Question

the cheapest and the best source of finance of an established cooperative society is​

Answer 1

Answer:

Retained Earnings

Explanation:

Financing decision involves identification of various available sources. The main sources of funds for a firm are shareholders funds and borrowed funds. Shareholders funds refer to equity capital and retained earnings. Borrowed funds refer to finance raised as debentures or other forms of debt. Retained earnings are the part of funds which are available within the business and is hence a cheaper source of finance.

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Answer 2

Retained Earning is the cheapest and the best source of finance of an Cooperative society.

Explanation:

• Retained earning is term used in accounting.

• This term refers to historical-profits earned by company, minus any dividends it paid in the past.

• The word -"retained" tells about those earnings which not paid to the shareholder as dividend instead they retained by company.

• When a company either pays dividends or loses money, its retained earnings gets decrease & increase when company makes profits.