to7arisb6ethHe
to7arisb6ethHe to7arisb6ethHe
  • 04-06-2016
  • Business
contestada

What is internal financing?

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meerkat18
meerkat18 meerkat18
  • 06-06-2016

Internal financing is when a firm uses its profits as a source of capital for a new investment. Instead of the firm obtaining financing from the outside, the firm can use its profits to acquire new investment. This can be considered less expensive than external financing because no transactions costs will be incurred. 

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