The portion of a company's profits that are kept by the company rather than distributed to the stockholders as cash dividends is referred to as
A) restricted earnings.
B) venture capital.
C) retained earnings.
D) institutional investment.

Question

Quizplus · Accepted Answer

Retained earnings refer to the portion of net income that is retained by the company rather than distributed to its shareholders as dividends. This reinvestment is often used for business growth, paying off debt, or other corporate needs.

The Portion of a Company's Profits That Are Kept by the Company