Question

Name the source of finance which is popularly known as self financing

Answer 1

Answer:

This is known as retained earnings. It is a source of internal financing or self- financing or 'ploughing back of profits'. The profit available for ploughing ...

Answer 2

Retained earnings

Retained earnings refer to the part of the profit left with the organization after the conveyance of profit to its investors. Maintenance of income is from the benefits of the business for a monetary year. An organization can't deliver profits or hold income on account of an overall deficit in any monetary year. On account of benefits, an organization can utilize them to disperse profit and give a re-visitation of the investors. They can hold the equilibrium piece of the profit by moving to saves.