Barat owns a large chain of Indian markets. A significant part of his job is determining the amount of income left after taxes and whether the company will retain this income or pay it out in dividends to its stockholders. The income in this scenario is ________ income.

Question

Quizplus · Accepted Answer

This scenario describes net income, which is the amount of income left after taxes. The firm may decide to retain all or a portion of the income for reinvestment in new assets. Whatever it decides not to keep it will usually pay out in dividends to its stockholders.

Barat Owns a Large Chain of Indian Markets