Categories: Economics WAEC

Which of the following means of funding a business is very reliable and cheap?

A. Bank loans
B. Loans from friends
C. Plough back profits
D. Debentures

Correct Answer:

Option C = Plough back profits

Explanation

Plough back profits also known as retained earnings are profits earned by a business, and reinvested in the business. What this means is that the business doesn’t spend its profits, but put it back in the business. It is considered one of the cheapest sources of business financing as it does not require interest to be paid.

Sunday

Share
Published by
Sunday

Recent Posts

List of Universities Offering Veterinary Medicine in Nigeria

Veterinary medicine is the branch of medicine that deals with the prevention, diagnosis, and treatment…

3 months ago

List of Universities Offering Anthropology in Nigeria

Anthropology is the scientific study of human beings and their cultures. It encompasses a wide…

3 months ago

List of Universities Offering Sociology in Nigeria

Sociology is the scientific study of human society, culture, and behavior. It examines the social…

3 months ago

List of Universities Offering Social Work in Nigeria

Social Work is a profession dedicated to helping individuals, families, and communities to cope with…

3 months ago

List of Universities Offering Religious Studies in Nigeria

Religious studies is an academic discipline that explores the beliefs, practices, and history of various…

3 months ago

List of Universities Offering Public Administration in Nigeria

Public administration is the field of study and practice that focuses on the organization and…

3 months ago