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Subjects

Business Studies

Owner’s Funds

In this Class 11 Business Studies topic, students learn how a business raises finance from its owners under the chapter Sources of Business Finance. The discussion focuses on equity shares and retained earnings, explaining how owners’ capital is generated, why retained profit can be reinvested, and how these sources support long-term business needs. Students also understand key features, benefits, and limitations, including ownership control, risk, return expectations, and the absence of a fixed repayment obligation.

Easy · Level 1 · 3 questions

Practice questions

01What is the benefit of saving for an entrepreneur?

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02What does capital mean in entrepreneurship?

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03If an entrepreneur starts a business using only personal savings, what is it called?

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