Paper 2 · Sources of Finance
Which of the following is an internal source of finance for a business enterprise?
AA bank overdraft on the trading account
BA hire purchase agreement on a vehicle
CRetained profit kept in the business
DTrade credit granted by a supplier
Explanation: An internal source comes from within the business itself, and retained profit is money the business has already earned and kept. An overdraft, hire purchase and trade credit all bring funds in from an outside party, so each of them is an external source.
Derived from ZIMSEC Business Enterprise Skills Paper 2, Nov 2020, Q1