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What is reinvested profit?

Updated: 4/28/2022
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7y ago

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Reinvested profits is also known as retained profit/earnings. The profits are put back into the business for things such as expanding business. Using reinvested profits is an internal source of finance.There is no charges such as interest, dividends or administration.However, if profit is used by the business, it cannot be returned to the owners. Some owners might object to this.

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