The retained earnings that corporations often use to finance R&D are also known as
A)venture capital.
B)undistributed profits.
C)dividends.
D)mutual funds.

Question

Quizplus · Accepted Answer

Retained earnings, which are used by corporations to finance activities such as research and development (R&D), are essentially the portion of net income that is not distributed to shareholders as dividends. Instead, these undistributed profits are reinvested into the company.

The Retained Earnings That Corporations Often Use to Finance R&D