In a profitable firm, total sources of funds will always . . . . . . . . total uses of funds.

be less than
be greater than
be equal to
None of these

The correct answer is C. be equal to.

In a profitable firm, total sources of funds will always be equal to total uses of funds. This is because the firm’s revenues will always be greater than or equal to its expenses. The difference between revenues and expenses is called profit, and this profit can be used to finance the firm’s activities.

Option A is incorrect because total sources of funds cannot be less than total uses of funds. If total sources of funds were less than total uses of funds, the firm would have to borrow money or sell assets to finance its activities. This would mean that the firm is not profitable.

Option B is incorrect because total sources of funds cannot be greater than total uses of funds. If total sources of funds were greater than total uses of funds, the firm would have more money than it needs to finance its activities. This would mean that the firm is not using its resources efficiently.

Option D is incorrect because total sources of funds must always be equal to total uses of funds in a profitable firm.

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