Home › CBSE Class 12 (Commerce) › Business Studies › Financial Management › The part of profit not paid out as dividend is t…
The part of profit not paid out as dividend is treated how?
AWritten off as loss
BKept in the business
CPaid out in taxes
DLent to directors
Answer & Solution
Correct answer: B. Kept in the business
Profit after tax is split between distribution to shareholders and retention for reinvestment.
Related questions
Higher inflation affects working capital requirement how?A larger lead time for raw materials means what for working capital?Credit availed from suppliers affects working capital requirement how?A liberal credit policy towards customers raises which requirement?A longer production cycle leads to what working capital need?During a boom, working capital requirement is typically what?Current liabilities are payment obligations due within what period?Which current asset is the most liquid?