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Sources of Business Finance — Business Studies STD 11 Commerce — Question

CBSE BoardEnglish MediumSTD 11 CommerceBusiness StudiesSources of Business Finance1 Mark
Question
What are retained earnings?
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Answer

A company generally does not distribute all its earnings amongst shareholders in form of dividend. A portion of the net earnings may be retained in the business ruse in future. These are called retained earnings.

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