ABC Ltd. is planning to expand their business and need money. The finance manager reported that company is not in a position to bear extra burden of paying interest and equity shareholders insisted not to isssue more shares as there is risk of loosing control on issue of new shares in the market.
(a) Suggest a source of owner's fund suitable in above case.
(b) State any two advantages of this source.

Explanation

(a) Retained earnings.