Paper 1 · Sources of Finance
Which one of the following is an internal source of finance for a business?
Aa debenture issue
Btrade credit
Cretained profit
Da bank overdraft
Explanation: An internal source comes from within the business itself, so no outsider has to be repaid and no interest is charged. Profit kept back instead of being distributed is the main example, along with the sale of surplus assets. Overdrafts, debentures and trade credit all bring money in from outside.
Derived from ZIMSEC Business Enterprise Skills Paper 1, Specimen Paper (edition B), Q2