The cheapest source of funds available to a company is through?
- the sale of shares
-
retained profits
- the sale of bonds
- lease financing
The correct answer is: B
Explanation
Retained earnings are a portion of a company's profit that is held or retained from being distributed or paid out to investors, but rather re-invested into the business. This is one of the cheapest sources of funds for a business because it doesn't come at an extra cost. That is, the business will not be required to pay interest on the funds.