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O-LevelCommerceFinance7100/11 · Oct/Nov 2024 · Q361 Mark

What is an advantage to a business of using retained profits to purchase a new factory?

Afixed assets increase in value

Bthere are increased dividends for shareholders

Cthere are low interest charges

Dthere is less impact on working capital

✓ Correct answer

D: there is less impact on working capital

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About this question

Topic: Finance, O-Level Commerce (syllabus 7100). Multiple choice, 1 mark.
Source: O-Level Commerce, Oct/Nov 2024 Paper 1 Variant 1, question 36.

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