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WAEC Economics 2019 Question 22

Question 22

Business Organisations

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

  1. A.Bank loans
  2. B.Loans from friends
  3. C.Plough back profits
  4. D.Debentures
Show the answer and explanation

Answer: C (Plough back profits)

Explanation

Retained (ploughed-back) profits carry no interest and need no outside approval.