Capital involves retaining excess of revenues over expenses

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Reference no: EM131511100

One traditional source of capital involves retaining the excess of revenues over expenses. The Kay-z Pharmaceutical Company, a for-profit corporation, is a relatively small start-up company. As a start-up, Acme has recorded operating losses for each of its five years of existence. The company now needs to raise more capital for research and development. Will retaining the excess of revenues over expenses be a possible source of capital for Acme?

A. Yes

B. No

C. Not applicable

Reference no: EM131511100

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