For years Microsoft did not pay dividends to its shareholders. Instead it held back these profits to be used for future growth o

Question

beks73 [17]

3 years ago

13

For years Microsoft did not pay dividends to its shareholders. Instead it held back these profits to be used for future growth o

r expansion. These undistributed profits are referred to as

Business

1 answer:

Lynna [10] · Answer 1 · 2022-07-30T15:34:58+03:00

Lynna [10]3 years ago

4 0

These undistributed profits are refereed to as RETAINED EARNINGS. They are also called accumulated profits, undivided profits and earned surplus. The undistributed profits form a part of a business' equity and they are owned by the shareholders.