Even beginners in SEO know how important inbound links (another site that you quote) are, but all types of links have value because it is the very structure of the Web. Do not neglect the internal links. These bind the various articles / posts and allow search engines to better analyze the site.
Outbound links
In addition to internal links and anchor texts, Google also analyzes the outbound links (When you link to other sites). It is important to keep these links homogenous, and not just links to stuff a single article and ignore the others. Similarly, do not link if you know the other site is a spam or content farm site, because it can lower your ranking. The Web is the result of billions of links, your site must also be like it in miniature scale. 
Creating outbound links has several advantages such as get to know the site and provide your readers with an additional source of information. Some believe we should avoid making too many links on one page, but we think it depends on the content. If you create a section listing free and paid hosting, it is obvious that you need to add dozens of links, and we do not think it can penalize you. Similar for download links. In fact, we recommend this type of article because readers love that all information is in one place.
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I am showing you one example from many how outbound can enhance search result. With certain keywords, this tool posted for download in this website comes as the very first result in Google. It has two outbound links to deviantArt (Page Rank 7):
The reason is, Google is very intelligent! It knows the outbound link is very honestly left there without any rel=”nofollow” link.
Lot of webmasters now (especially of forums) either prohibits to post link (s) to member’s own website or a relevant website. Actually, they are killing themselves. It does gives momentary benefit, but in long term, it harms more.
Broken links
Broken link gives a bad image of your site by not counting the loss of page rank if it is too frequent. You can use a tool like Xenu is a free download to check broken links on its site. This tool is interesting because it also creates a site map which will be discussed in a forthcoming article.
If you are lucky enough to own Adobe Dreamweaver, know that it also has an option to check the broken links. But what if it is the source that no longer exists? In this case, it is recommended to link to a site or remove altogether rather than let in that state.
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Thanks Abhishek for explaining some detailed information about outbound links