CBSE BoardEnglish MediumSTD 11 CommerceEntrepreneurshipResource Mobilization1 Mark
Question
Explain ‘retained profits' as a method of equity financing.
✓
Answer
Retained profits is a technique of financial management, under which all profits of a company are not distributed amongst the shareholders as dividend, but a part of the profit is retained and reinvested in the business.
This process of retaining profits year after year and their utilisation back into the business is also called ploughing back of profits?
Need a full question paper?
Generate a complete, print-ready paper with questions like this in minutes — across 16+ boards, with answer keys.