An internal source of fund for an entrepreneur is__________
Answer Details
An internal source of fund for an entrepreneur is "Retained earnings".
Retained earnings refer to the profits that a company has earned and kept aside to reinvest in the business instead of distributing them to shareholders as dividends. Entrepreneurs can use these retained earnings as an internal source of funding for their business, without having to borrow money from external sources like banks or suppliers.
Retained earnings can be used for various purposes such as expanding the business, buying new equipment, hiring employees, or launching new products. Using retained earnings as a source of funding can help entrepreneurs avoid debt and interest payments, and also gives them more control over their business.
However, it's important to note that using retained earnings for funding also means that the profits are not being distributed to shareholders as dividends. So, entrepreneurs need to carefully balance the need for funding with the desire to reward shareholders for their investments.