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प्रश्न
Answer the question.
Discuss three advantages of plowing hack of profit, from the company’s point of view.
उत्तर
Ploughing back of profits refers to the process of retaining a part of the net profit year after year and reinvesting the same in business.
There are some advantages of ploughing back of profits are :
(i) The company can undertake its plans for expansion, growth and modernization without bothering about conditions in the capital market.
(ii) Ploughing back of profits add to the financial strength and creditworthiness of the company.
(iii) Reserves created by ploughing back of profits can be used to stabilize the rate of dividend on equity shares.
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संबंधित प्रश्न
Find the odd one.
Answer in one sentence.
What are retained earnings?
Justify the following statement.
Retained earning is simple and cheapest method of raising finance.
What is retained earnings? Explain Determinants of retained earnings.
Explain any four disadvantages of Retained Earnings.
What are retained earnings?
What are retained profits called "self financing"?
What are retained profits?
Discuss the advantages of retained profits as a source of finance.
Discuss the disadvantages of retained profits as a source of finance.
