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Shareholders' funds refer to equity capital and:
ATrade creditors
BRetained earnings
CBank overdrafts
DPublic deposits
Answer & Solution
Correct answer: B. Retained earnings
1. Borrowed funds come from debentures and loans.
2. Shareholders' funds are equity plus retained earnings.
3. Firms need a judicious mix of both.
_Source: NCERT Class 12 Business Studies Part II, Chapter 9, Financial Management._
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