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gladu [14]
4 years ago
10

After earning $30 million in net income, Rolatrim Industries distributed $5 million in dividends to their stockholders. The boar

d of directors of the firm decided to invest the remaining $25 million back into the business. This $25 million reinvestment of profits represents: mutual funds. retained earnings. a trust fund. preferred capital.
Business
1 answer:
ValentinkaMS [17]4 years ago
8 0

Answer:

retained earnings        

Explanation:

In simple words, Retained earnings refers to the amount from net profits left available to the company after the owners have taken out dividends. The determination to maintain the profits or disperse them to the owners is typically left mostly to administration of the company.              

Although this is done by the declaration of income, the net benefit is still included both in the income statement as well as the cash flow statements. This are not paid to shareholders as dividends but are rather used for new funding back into the company..

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<h2>In this case,the answer would be option D. or It can be a source of competitive advantage for a period of time.</h2>

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  • In Production Economics,any organizational input in the production process can provide competitive advantage to any firm or company for a sustainable period of time only if it provides commercial or economic value to the firm or company,it is unique and it cannot be completely imitable or substituted through other equivalent resource/s by other market competitors.
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