One source of finance ABC could use to expand e-waste business?

• A. Retained profit
• B. Share capital
• C. Long-term loans
• D. Retained profit, share capital, or long-term loans

Answer: (D)

The main idea is that expansion can be funded from different types of finance, not just one source. Retained profits come from profits kept in the business, offering cheap, internal funds but only if profits are available. Share capital involves raising funds by issuing new shares, which brings in money but may dilute ownership and incur flotation costs. Long-term loans provide substantial funds with fixed repayments over time, but they create interest costs and a repayment obligation. Because growth often needs a mix of funds or the option to choose the most suitable among several possibilities, the correct choice lists all viable sources: retained profit, share capital, or long-term loans. The other options each point to a single source, whereas expansion can be financed in multiple ways, making the combined option the most comprehensive.