Getting sources of finance from outside the organization, such as through debt, share capital, or government funding.

• A. Internal financing
• B. Leasing
• C. Revenue expenditure
• D. External financing

Answer: (D)

External financing is about funds that come from outside the business. When a company borrows money, issues new shares, or receives government grants, those funds are provided by external sources rather than generated from within. That’s exactly what the statement describes: getting funds from outside the organization, through debt, share capital, or government support. Internal financing would use funds produced inside the business, like retained profits, while revenue expenditure refers to day‑to‑day costs and does not create new funds. Leasing is a financing arrangement to obtain an asset but isn’t a general category of sources of finance.