No charge is created against assets when retained earnings are taken as a source of finance.
Discuss the merits and demerits of retained earnings as a source of business finance.
"As a source of finance retained earnings is better than other sources". Do you agree ? Give reasons for your answer.
(a) Discuss any three characteristics of debentures.
(b) Discuss any three limitations of retained earning as a source of Finance.
Retained earnings are an economical, self-financed and permanent source of capital for a company, but at times creates dissatisfaction among shareholders and may result in overcapitalisation. Identify the values reflected in this statement.
The cheapest source of finance is
(b) equity share capital
(c) preference share
(d) retained earning