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 to determine if they are external sources:

(A) Bank loan, mortgage: Both are external funds. A bank loan is borrowed from a financial institution, and a mortgage is a loan secured by property.

(B) Retained profits, leasing: Retained profits are internal funds generated by the business, while leasing is generally a contract but not a fund source. Hence, this option is incorrect.

(C) Owner's Equity, mortgage: Owner's equity is an internal source (investment from the owner), while a mortgage is external. Therefore, this option is incorrect.

(D) Retained profits, factoring: Retained profits are internal, and factoring is a way of raising funds from external sources but does not fit with retained profits. This option is incorrect.

From the analysis above, the only option that encompasses two external sources of funds is (A) Bank loan, mortgage.