Define the current and potential sources of finance that support organizational objectives

An organization needs financial resources to run the operations. These resources form different types ranging from internal to external and then come in many kinds. The type of source of finance that any particular organization uses depends upon the need, objective, size, policy and capital structure of the organization. Below are highlighted some main sources of finance:

  1. Internal sources: As the name signifies, these sources are generated from within the organization and could come from either of the below two:
    1. Retained profits: These are earnings of the business over time that can be reinvested.
    2. Sale of assets: Sale of fixed assets that are no longer useful for the organization is another source of financing.
  2. External sources: 

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