Which of the following is a source of external capital?
A)Retained earnings
B)Inventory
C)Long-term debt
D)Operating income (earnings before interest and taxes)
E)None of the above

Question

Quizplus · Accepted Answer

Long-term debt is a source of external capital as it involves borrowing funds from outside sources such as banks or bondholders. Retained earnings and operating income are sources of internal capital, generated through business operations. Inventory is an asset that can be sold to generate cash, but is not considered a source of external capital.

Which of the Following Is a Source of External Capital