Question

Which of the following is a resource owned by the business with the purpose of
using it for generating future profits?
(A) Loan from Bank
(B) Owner's Capital
(C) Trade Mark
(D) All of the above​

Answer 1

(B) Owner's Capital is the Answer.

Answer 2

D) All of the above resources are owned by the business to use them for generating future profits.

Definition of Future profits:

An investment made by the company to earn good and regular future profits is done to generate future cash flows from the best source, so choosing a good source of finance is also important.

What are sources of finance:

• There can be multiple sources of finances such as the owner's fund or borrowed fund.

• A source of finance is chosen with a point of view of incurring less cost and generating more profit and also according to the preferences and needs of the company.

• The loan from the bank is borrowed fund on which the company has to pay interest, and on the owner's fund company has to pay the dividend and the trademark also permits to access more funds and revenue.

Thus, here all of them are used by the company to generate future profits.