Final answer:
Businesses may rely on externally generated funds, especially during initial stages or for significant investments; however, it is not accurate to say external funds are the most frequently used type at all business stages.
Step-by-step explanation:
The statement 'The type of funds most frequently used by businesses is externally generated funds' can be both true and false depending on the context and the stage of the business. In the initial stages, businesses may rely heavily on external funds, such as loans, investors, and venture capital, to get started and grow. As businesses mature, they may generate enough revenue to fund their operations internally. However, for the purpose of major expansions, acquisitions, and other significant investments, even established businesses often turn to externally generated funds. Therefore, while external funding is crucial, particularly in the early stages, it's not accurate to say that it is always the most frequently used type of funds by businesses at every stage.
In regards to some of the other true or false statements provided for reference, they cover a variety of topics and not all of them directly relate to the subject at hand. However, they can provide a clearer understanding of external influences and economic principles that indirectly impact businesses and their funding strategies.