Answer:
Ans. The differences between internal and external sources of raising funds are summarized in the table given as follows:
Basis Internal Sources External Sources Meaning Internal sources of capital are those sources that are generated within the business. External sources of raising funds are those which are outside the business. Example Ploughing back of profits, equity shares Financial institutions, loans from banks, preference shares, debentures, public deposits, lease financing, commercial papers, trade credit, factoring Reliability It is more reliable. It is less reliable.
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