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The cheapest source of finance is:
  • a)
    Equity share capital
  • b)
    Preference share
  • c)
    Retained earning
  • d)
    Debenture
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
The cheapest source of finance is:a)Equity share capitalb)Preference s...
Retained earning is a part of profit which is not distributed among shareholders as dividends but is retained in the business for future use. It is also known as self financing. It is available free of cost for the business.
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The cheapest source of finance is:a)Equity share capitalb)Preference sharec)Retained earningd)DebentureCorrect answer is option 'C'. Can you explain this answer?
Question Description
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