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 refer to the portion of a corporation's profits that are not paid out as dividends, but rather retained for future use. These profits can be used to finance research and development, as well as other business activities. Therefore, the retained earnings that corporations use to finance R&D are also known as undistributed profits. Venture capital refers to funding provided by investors to start-up companies, mutual funds refer to pooled investments in securities, and dividends are payments made to shareholders of a company's profits.

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