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Define Retained profits. - Business Studies

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Question

Define Retained profits.

Definition
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Solution

Retained earnings or Ploughing back of profits refers to the process of retaining a part of the net profit year after year and reinvesting the same in business. 

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Chapter 18: Sources of Business Finance - EXERCISES [Page 269]

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Goyal Brothers Prakashan Business Studies [English] Class 12 ISC
Chapter 18 Sources of Business Finance
EXERCISES | Q II. 4. | Page 269
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