Vidyalelo
Commerce · Q45

Business and Commerce

Graduate and Post Graduate · Commerce · question 45

Q45

Ploughing back of profits means __________.

A.
earning of black money
B.
dividends not claimed by shareholders
C.
retaining the earnings
Answer
D.
not paying dividends in a particular year

Answer: Option C

Solution

Answer: Option C
Solution:
The ‘Ploughing Back of Profits’ is a management policy under which all profits are not distributed amongst the shareholders, but a part of the profit is ‘Ploughed back’ or retained in the company.