MANAGEMENT

Detailed explanation-1: -Retained earnings is a permanent source of fund available to an organization. It is an internal source of financing.

Detailed explanation-2: -External sources of finance do not include: Debentures. Retained earnings. Overdrafts.

Detailed explanation-3: -External sources of finance refer to money that comes from outside a business. There are several external methods a business can use, including family and friends, bank loans and overdrafts, venture capitalists and business angels, new partners, share issue, trade credit, leasing, hire purchase, and government grants.

Detailed explanation-4: -Retained profits/earnings are called the internal source of finance for a business because they are the end product of running a business.