Question

Which of the following is a common method of internal resource mobilisation for a business?

• A. Plowing back profits into the business.
• B. Issuing new shares to the public.
• C. Taking out a large loan from a foreign bank.
• D. Receiving a grant from an international aid organization.

Answer 1

Answer:

A. Plowing back profits into the business.

• Reinvesting profits (retained earnings) is a common and effective way for a business to fund its operations and expansion from internal sources.