Question

The most dependable source of fund is: *
O Equity shares
w
Retained earning
O both A and B
None of the above​

Answer 1

The most dependable sources of fund is Retained earning .

• The phrase describes a company's prior profits less any dividends paid. Retained refers to the business's choice not to transfer dividends to shareholders
• As a result, retained earnings decline when a company experiences a loss or pays dividends, but increase when new profits are realised.

• The portion of net income that remains after dividend payments to shareholders is referred to as retained earnings.

• Profits are often either retained by management or distributed to shareholders.

• Due to its preference for using retained earnings to fund growth, a company with a growth-oriented strategy may choose to pay dividends infrequently or not at all.

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