Final answer:
Internal sources of cash for a firm include cash inflows from operating, investing, and financing activities. The correct answer is (d) All of the above, as firms utilize a mix of these activities to generate cash internally.
Step-by-step explanation:
The internal sources of cash for a firm can come from various activities that generate cash flow. These include:
When discussing the internal sources of cash, all of the above options (a, b, and c) are correct. Firms may reinvest their profits, a primary form of internal funding, back into the business to support various operations and growth initiatives. However, during periods when profits are not substantial, firms often turn to other forms of internal funding, such as borrowing from banks or through the issuance of bonds. Moreover, firms sometimes consider the inflow of foreign financial capital or government borrowing as additional sources of capital.