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JAMB Commerce 2008 Question 12

Question 12

Business Finance

The cheapest source of funds available to a company is through

  1. A.the sale of shares
  2. B.retained profits
  3. C.the sale of bonds
  4. D.lease financing.
Show the answer and explanation

Answer: B (retained profits)

Explanation

Retained profits are the company's own money: no interest, issue costs or new shareholders are involved.