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

Assessment: WAEC SSCE - Commerce - 2002 (Objective) Subject: Commerce

Question 1 Report

Which of the following is an internal source of capital to a business concern?
Answer Details
Retained profit is an internal source of capital to a business concern. It is the portion of a company's net income that is not paid out as dividends but instead is kept as a reserve to reinvest in the business or pay off debt. This is a source of financing that does not involve external stakeholders, such as banks or shareholders, and is thus an internal source of capital. By reinvesting profits back into the business, a company can grow its operations and increase its value without diluting ownership or incurring interest expenses.
Read lesson note on Financing Business (JAMB)
Read lesson note on Business Capital And Profits (WAEC)
View Answer

Related Questions

1

Which of the following has no limit to its membership?
2

The refund of a duty which had been paid on importation that are later re-exported is known as?
3

The distribution and exchange of goods and services for the satisfaction of wants in the concern of?
4

Which of the following does not lead to the dissolution of a partnership?
5

An offer by one company to buy up all or greater part of another company's share is known as?
6

Transforming raw materials into finished products is an example of?
7

Transforming raw materials into finished products is an example of?
8

Which of the following is concerned with actual production of goods and services?

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning