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What is the main purpose for which a company normally uses its profits? - Accounts

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Question

What is the main purpose for which a company normally uses its profits?

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Solution

A company uses its profits mainly for the purpose of distribution among its shareholders in the form of dividend and bonus shares.

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Chapter 6: Company Accounts - Issue of Shares - SHORT ANSWER QUESTIONS [Page 6.149]

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D. K. Goel Accountancy Volume 1 and 2 [English] Class 12 ISC
Chapter 6 Company Accounts - Issue of Shares
SHORT ANSWER QUESTIONS | Q 40. | Page 6.149
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