BUSINESS ADMINISTRATION
ENTREPRENEURIAL DEVELOPMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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IPO
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Self Finance
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Investment Firms
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Detailed explanation-1: -This is known as retained earnings. It is a source of internal financing or self-financing or ‘ploughing back of profits’. The profit available for ploughing back in an organisation depends on many factors like net profits, dividend policy and age of the organisation.
Detailed explanation-2: -Self-financing occurs if the activity is profitable and if a decision is made not to distribute the profits. In accounting terms, self-financing corresponds to the net profit after tax, not distributed, which is found in the liabilities on the balance sheet in terms of reserves and results recorded.
Detailed explanation-3: -transitive : to raise or provide funds or capital for (something) oneself : to finance (something) oneself.