The sources of equity finance for a company are:
A) contributed equity.
B) retained profits.
C) general reserves.
D) all of the above.

Question

Quizplus · Accepted Answer

All three options (contributed equity, retained profits, and general reserves) are sources of equity finance for a company. Contributed equity refers to money raised by selling shares to investors, while retained profits refer to profits that are reinvested back into the company rather than being paid out as dividends. General reserves are created by setting aside a portion of profits for future use, such as expansion or emergencies.

The Sources of Equity Finance for a Company Are