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Introduction All businesses need short-term finance from the very beginning to start up the business and to cover day-to-day running costs. This provides the business with working capital. However businesses also need long-term capital to help them to grow and expand its business. And this is paid back over a long period of time. Without finance a business would find it difficult to accomplish its fulfilments. But this can be taken onto a larger scale, as all businesses need finance at some point. Internal finances * Retained profit If an organisation do well in terms of business and made a good profit after paying all its expenses, it could use that profit for its investment projects. We can conceder this kind of financing as a less risky and more profitability from the new project The advantages of retained profit 1. Firm has more control over the money 2. It reduces gearing. 3....

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