internal financing 1
noundomain: activity
EnWordnet [ver.5.0]
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EnglishDefinition
the name for a firm using its profits as a source of capital for new investment, rather than distributing them to firm's owners or other investors, or obtaining capital elsewhere.
Examples
- 1.Internal financing is generally thought to be less expensive for the firm than external financing because the firm does not have to incur transaction costs to obtain it, nor does it have to pay the taxes associated with paying dividends.
