Which of the following is an internal source of capital to a business concern?

Retained profits are an internal source of capital for a business concern. When a business earns profits, it has the option of distributing those profits to its owners (shareholders) as dividends or retaining them for reinvestment in the business. The portion of profits that a business chooses to retain is known as retained earnings, which can be used to fund future investments or pay off debt. Retained earnings are an important source of capital for businesses because they do not involve taking on additional debt or diluting ownership through the issuance of new shares of stock. Instead, retained earnings represent a form of internal financing that can help a business grow and expand while maintaining control over its operations. Other sources of capital, such as trade credit, debentures, and overdrafts, are external sources that involve taking on additional debt or selling ownership stakes to outside investors. While these sources of capital can be important for businesses, they also come with additional costs and risks that may not be present with retained earnings.