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.