Final answer:
The sale of company assets represents an internal source of funds for a company, as it involves generating capital from within the company itself, in contrast to external sources like bank loans, issuance of shares or government grants.
Step-by-step explanation:
An internal source of funds for a company refers to the capital that is generated within the company itself rather than through external financing. Among the options provided, the sale of company assets is considered an internal source of funds.
When a company sells its assets, it is essentially converting its physical or intangible assets into cash, which can then be used for various purposes such as investing in new projects, paying off debt, or for other operational needs. The other options listed, such as a bank loan, the issuance of shares, and receiving a government grant, are all external sources of funding, as they involve obtaining capital from outside the company.