All are ways in which a firm's internal sources of finance can be increased except:

Question

Quizplus · Accepted Answer

Increasing inventory levels is not a way to increase a firm's internal sources of finance, as it only ties up the firm's cash in unsold inventory. A, B, and D are all ways that a firm can increase its internal sources of finance by reducing cash outflows (cutting the dividend rate), delaying payments to creditors, or retaining more profits.

All Are Ways in Which a Firm's Internal Sources of Finance