Select the Incorrect Statement Concerning Retained Profits as a Source

Select the incorrect statement concerning retained profits as a source of finance.

A) Retaining profits has no effect on who controls the business.
B) The business does not have to wait to receive the funds when using retained profits.
C) There is more scrutiny when retained profits are used for investment than when shares are issued.
D) There are no costs associated with retaining profits.

Correct Answer:

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