Select the incorrect statement concerning retained profits as a source of finance.
A) Retaining profits has no effect on who controls the business.
B) The business does not have to wait to receive the funds when using retained profits.
C) There is more scrutiny when retained profits are used for investment than when shares are issued.
D) There are no costs associated with retaining profits.
Correct Answer:
Verified
Q15: Preference shares are no longer a major
Q16: Which of these is not an internal
Q17: The firm's financial structure relates to how
Q18: It is true that:
A)shareholders have the protection
Q19: Ordinary shareholders:
A)have the right to receive arrears
Q21: Covenants imposed on a loan may include:
A)a
Q22: A long-term lease that cannot be cancelled
Q23: Which statement is correct?
A)Short-term assets should be
Q24: A loan provided by a financial institution
Q25: A disadvantage of short-term debt over long-term
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