Raman the finanace manager of 'Anjali Food 1 Ltd', has decided tp plough back the profits' for expanding his business. Identify the source mentioned here and write any three advantages of this source

sourcesofb.f
cbse

#1

The source of finance mentioned here is ‘Retained Earnings. Following are the advantages of Retained earnings’.
(a) Company does not have to pay any cost to obtain it.
(b) This source is readily available and considered as permanent source of funds.
© Retained earning eliminate the fear of ownership dilution and loss of control by equity shareholders.