JAMB - Commerce (2001 - No. 12)

(i) Personal Savings
(ii)Retained Earnings
(iii)Accrued taxes
Which of the items above constitute internal sources of financing for companies?
i and ii
i and iii
ii and iii
i, ii and iii

Explanation

Internal sources of financing for companies include funds that are generated within the organization itself. These are:

  1. Personal Savings: This refers to the personal funds of the business owner or partners used to finance the company.

  2. Retained Earnings: This is the portion of the company's profits that are not distributed as dividends but are retained and reinvested in the business.

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