Retained earnings are called self-financing.
True
False
True: Retained earnings are called self-financing, because the firm itself generates the funds.
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.
Directors of Roma Ltd. wants to use debentures for expansion plans but the finance manager wants to use retained earnings for this purpose. You as a finance manager has to convince directors how retained earning s are better than debentures.
Discuss the merits and demerits of retained earnings as a source of business finance.
State the merits and demerits of public deposits and retained earnings as methods of business finance.