WAEC Economics 2019 Objective — Question 23
Question 23 of 50 from the West African Examinations Council (WAEC) Economics 2019 Objective paper, with the correct answer and a full explanation.
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Which of the following means of funding a business is a very reliable and cheap?
- A. Bank loans
- B. Loans from friends
- C. Plough back profitsCorrect
- D. Debentures
Explanation
Ploughing back profits (retained earnings) is the most reliable means of funding a business, since no external cost (interest) is involved.
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