Profits of the business that have not been paid to shareholders are called:
A) dividends.
B) losses.
C) retained earnings.
D) discounts.

Question

Quizplus · Accepted Answer

Retained earnings refer to the portion of net profits that a company decides to keep rather than distribute to its shareholders as dividends. These earnings are reinvested into the business for various purposes such as paying off debt, expansion, or saving for future opportunities.

Profits of the Business That Have Not Been Paid to Shareholders