What does it indicate when companies begin to finance their investments using internally generated funds?

Financial Markets and Funds MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

PPSCFPSCNTSPakistan govt jobs
Subject
Financial Markets and Fundsfinance-mcqs › financial-markets-and-funds
Published
12 May 2023
Last updated
28 May 2026

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Explanation

When businesses opt to invest using their own internally generated funds, it suggests that the cost of borrowing money from external sources is high, making internal financing more attractive.

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