In times of recession, retained earnings decline as a percent of internal funds.

Name: In times of recession, retained earnings decline as a percent of internal funds.
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Question

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During a recession, companies may struggle to generate profits and may need to use their retained earnings to cover expenses, reduce debt or invest in new opportunities. As a result, the proportion of internal funds represented by retained earnings may decrease.

In Times of Recession, Retained Earnings Decline as a Percent