Advertisements
Advertisements
Question
Write a short note on Retained Earnings.
Solution
Retained Earnings:
Retained earnings refer to the process of retaining a part of net profit year after year and reinvesting them in the business. It is also termed as plowing back of profit. An individual would like to save a portion of his/her income for meeting the contingencies and growth needs.
Similarly, a profit-making company would retain a portion of the net profit in order to finance its growth and expansion in near future. It is described to be the most convenient and economical method of finance.
APPEARS IN
RELATED QUESTIONS
Choose the Correct Answer.
It may be wise to finance fixed assets through ____________
Name any two sources of funds classified under borrowed funds.
Name any two internal sources of business finance.
State any two factors that affect the choice of source of finance.
List sources of raising long-term and short-term finance.
List out the various sources of financing.
What are the different types of short-term finances given by commercial banks?
Write a short note on Lease financing.
Explain any four personal investment avenues.
Ploughing back of profit is an ______ source of financing.
