The majority of funds used by business firms to finance their working capital and investment needs come from:

Question

Quizplus · Accepted Answer

The majority of funds used by business firms to finance their working capital and investment needs come from internal cash flow. This includes profits that are retained in the business rather than distributed to shareholders or used for other purposes. Internal financing is often preferred because it does not involve borrowing costs or dilute ownership, as issuing new stock would.

The Majority of Funds Used by Business Firms to Finance