When a corporation uses profits to pay for the purchase of new capital equipment, this is know as

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Reinvestment involves using profits to purchase new capital equipment or other assets that can help the business grow and increase profitability in the long run. This is an important strategy for businesses that want to stay competitive and maintain their market position. Coupon payments are payments made to investors who hold bonds, while dividends are payments made to shareholders. Collusion is an illegal practice in which competitors work together to fix prices or eliminate competition.

When a Corporation Uses Profits to Pay for the Purchase