Sources of finance

Q.2 Which of the following is true?

• (a) Retained Earnings are cheaper than External Equity

• (b) Retained Earnings are costlier than External Equity

• (c) Equity Retained earnings are cost free

• (d) External Equity is cheaper than Internal Equity

Retained earnings in business are

• owner's fund

• creditor's fund

• borrowed fund

Which source of finance leads to dilution of management's control over the business?

• Retained earnings

• Preference shares

• Debentures

• Equity shares

the process of retaining a part of net profit over years and reinvesting the same is known as

• public deposits

• factoring

• Retained earnings

• Capitalisation of reserve

public deposits are raised directly from

• the public

• the owners

• the directors

• the auditors

____________is an example for short term finance

• trade credit

• debentures

• shares

ICICI was established in

• 1985

• 1975

• 1965

• 1955

investors who want a steady income may not preder

• debentures

• bonds

• equity shares

• public deposits

The term redeemable is used for

• commercial paper

• equity shares

• preference shares

• public deposites

funds raised through debentures and loans are called

• owner's capital

• borrowed capital

• retained earnings

• share capital