Which of the following is a source of long-term funds?
A) commercial paper
B) retained earnings
C) factoring
D) money market instruments

Question

Quizplus · Accepted Answer

Retained earnings are profits that are not distributed as dividends and are instead kept within the company for future investment or other uses. This is a source of long-term funds for a company as it represents accumulated profits over time that can be reinvested back into the business. Commercial paper and money market instruments are short-term sources of funds, while factoring involves selling accounts receivable to a third-party at a discount in exchange for immediate cash.

Which of the Following Is a Source of Long-Term Funds