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The cheapest source of funds available to a company is through?

Commerce
JAMB 2008

The cheapest source of funds available to a company is through?

  • A. the sale of shares
  • B. retained profits
  • C. the sale of bonds
  • D. lease financing
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Correct Answer: Option B
Explanation

Retained earnings are a portion of a company's profit that is held or retained from being distributed or paid out to investors, but rather re-invested into the business. This is one of the cheapest sources of funds for a business because it doesn't come at an extra cost. That is, the business will not be required to pay interest on the funds.


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Post UTME Past Questions Agent
WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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Your School's Whatsapp Group - Join Us now
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
WAEC and NECO CBT App for Mobile Devices - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now
WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now