Answer and explanation:
In the corporate world, outside or external financing resources refer to all the sources from where a business can obtain the necessary capital to handle its operations without using the firm's assets. Common examples of external financing resources are:
- Venture Capitals: funding performed at an initial stage of companies after making research on the market and the company.
- Term loans: provided by financial institutions that profit from the interest rate established in the loan or assets as collateral in case of payment failure.
- Debt Factoring: short-term financing in which an organization sells its account receivables at a discount.
