Question

What is the difference between internal and external sources of raising funds?

Answer 1

Internal sources	External Sources
Funds are generated from within the organisation	Funds are generated from outside the organization
Fulfill limited needs of the business	Fulfill long term needs f the business
It is not costly	It is costly as compared to internal sources of fund
No need to mortgage the assets of the company to obtain fund from internal sources	Need to mortgage the assets of the company to obtain fund from internal sources