A firm can either pay its earnings out to its investors,or it can keep them and reinvest them.

Name: A firm can either pay its earnings out to its investors,or it can keep them and reinvest them.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. A firm has two options regarding its earnings: distribute them to investors in the form of dividends or reinvest them in the business. The decision depends on various factors such as the company's growth prospects, capital needs, and investor preferences.

A Firm Can Either Pay Its Earnings Out to Its