Profits that are reinvested in a firm rather than paid to the firm's owners are called

Question

Quizplus · Accepted Answer

Retained earnings are profits that are not distributed as dividends, but instead are reinvested back into the company for future growth and development. This can include investments in research and development, marketing, or expanding operations. By retaining earnings, a company can build up its financial reserves and increase its asset base, which can lead to higher profits and increased shareholder value over time.

Profits That Are Reinvested in a Firm Rather Than Paid