Which of the following are BOTH external sources of funds for a business? (A) Bank loan, mortgage (B) Retained profits, leasing (C) Owner's Equity, mortgage (D) Retained profits, factoring - HSC - SSCE Business Studies - Question 16 - 2010 - Paper 1

Now, let's evaluate each option:

(A) Bank loan, mortgage: Both are external sources. A bank loan is borrowed money from a financial institution, and a mortgage is a loan secured by real estate.

(B) Retained profits, leasing: Retained profits are internal as they come from previous earnings, while leasing is a method of financing but not an external source of funds.

(C) Owner's Equity, mortgage: Owner's equity is an internal source because it refers to the owner's investment in the business, but a mortgage is an external source.

(D) Retained profits, factoring: Retained profits are internal, and factoring involves selling receivables, which can be considered an alternative financing method but is not external in the same sense as a loan.

Therefore, only (A) aligns with the criteria.

After evaluating all options, the correct answer is (A) Bank loan, mortgage, as both are indeed external sources of funds for a business.