ENTREPRENEURIAL PLANNING
FINANCIAL PLANNING AND ANALYSIS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Either A or B
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None of the above
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Detailed explanation-1: -External financing is any kind of business funding you acquire from sources outside the company. Bank loans, investments from private individuals or investment firms, grants and selling company shares are all examples of external financing.
Detailed explanation-2: -The sources for external finances that are available are export credit, world bank group, foreign direct investment. The WTO funds are not a source of external finances.
Detailed explanation-3: -Internal sources of finance include Sale of Stock, Sale of Fixed Assets, Retained Earnings and Debt Collection. In contrast, external sources of finance include Financial Institutions, Loan from banks, Preference Shares, Debenture, Public Deposits, Lease financing, Commercial paper, Trade Credit, Factoring, etc.