Q.Name any two internal sources of business finance.

Internal sources are those generated from within the business itself, without approaching any outside party. …

Internal sources of finance are those generated from within the business's own operations, without depending on any outside investor or lender. The two most common internal sources are: (i) Retained earnings, also called ploughing back of profits, which is the portion of the company's own after-tax profit that is kept back and reinvested in the business instead of being distributed to shareholders as dividend. (ii) Sale of surplus or idle assets, where a business raises cash by disposing of assets it currently owns but does not actively need for its operations. Both of these sources involve no cost of raising funds and no dilution of ownership or …

Students sometimes list 'bank loan' or 'public deposit' as internal sources because the business initiates the transaction — remember 'internal' refers to where the MONEY comes from (the business's own operations/assets), not wh …