Question 1 a what are the sources of internal financing?


Venture capital and business angels



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Abdulaziz Turgunov

Venture capital and business angels - refer to an individual or group that is willing to invest money into a new or growing business in exchange for an agreed share of the profits. The venture capitalist will want a return on their investment as well as input into how the business is run.
What’s the difference between internal and external sources of finance?
The most significant distinction between internal and external sources of financing is their source of origin. Internal finance originates from the company's own resources. In other words, it is a sort of self-sufficient finance. External finance comes from outside investors, who might include stockholders or lenders who may anticipate a portion of the company's profits or interest payments in return for their contributions.
In many cases, internal funding is more easily obtained for established firms that may already have shares or assets that may be used as collateral to get finance. The availability of external finance, on the other hand, may be very beneficial for small and start-up firms that need a capital injection in order to get off the ground. Of fact, major organizations may have an easier time obtaining external sources of finance since their track record may indicate that they are a more dependable debtor than small ones.

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