URGENT
Why are retained profit called self-financing
Hey Arjit,
Firms usually keep a certain part of the profits earned before distributing dividends to their shareholders. These undistributed profits are retained in the business for future use and are known as retained earnings. Retained earnings
are called self financing as a part of these funds are reinvested in the business.
Firms usually keep a certain part of the profits earned before distributing dividends to their shareholders. These undistributed profits are retained in the business for future use and are known as retained earnings. Retained earnings
are called self financing as a part of these funds are reinvested in the business.