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Profits kept back in the business instead of paid as dividend are:
APublic deposits
BBank overdrafts
CRetained earnings
DTrade credit
Answer & Solution
Correct answer: C. Retained earnings
1. It is also called ploughing back of profits.
2. It is a form of self-financing.
3. These are retained earnings.
_Source: NCERT Class 11 Business Studies, Chapter 8, Sources of Business Finance._
Related questions
Trade credit is granted to customers who have reasonable financial standing and:In the buyer's records, trade credit appears as sundry creditors or:Credit extended by one trader to another for buying goods is:Excessive ploughing back of profits may cause dissatisfaction because shareholders get:Which is a merit of retained earnings?A limitation of internal sources of funds is that they:Suppliers, lenders and investors outside the firm are:Collecting receivables faster, selling surplus stock and ploughing back profit are example