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Answer on Finance Question for babu

Question #34880
source of capital of partnership ?
Expert's answer
1. Personal contributions of partners.
2. Funds from financial institutions (usually as loans and overdrafts).
3. Trade credit.
4. Retained earnings/Ploughed back profits - These are profits of the business which are kept back that can be put into the business where the need arises. These profits are important sources of capital.

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