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Sources Of Business Finance

Question

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Which is not the merit of undistributed profit ?
It the most dependable source of finance.
It creates dissatisfaction among shareholders.
It does not bear any fixed liability.
It involves no risk of dilution of control.

Solution

B.

It creates dissatisfaction among shareholders.

Some More Questions From Sources of Business Finance Chapter

Give meaning of owner’s capital.

Give meaning of borrowed capital.

Give meaning of long-term finance.

Give meaning of medium-term finance.

Give meaning of short-term finance.

Define shares.

Give the types of shares.

Define preference shares.

Give meaning of equity share.

Give the meaning of debenture.

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