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To plough back profits is to reinvest the profits into future business activities.

To plough back profits is the alternative to distributing profits. Distributing profits is done by paying shareholders dividends.

A company may decide to pay a proportion of profits as dividend and to reinvest (plough back) the remainder.

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14y ago

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What are undistributed corporate profits called?

Undistributed corporate profits are also called IENR i.e. Income earned but nor receieved. These are the profits that shareholders may earn but will not receieve in their salary. Even I just read about it somewhere so I am guessing it is something like the deductions that are made in your salary apart from income tax.. Basically you earn that money on paper but you don't receieve it. A better explanation is welcomed


Accounting profits are typically?

greater then economic profits,as accounting profits do not include implicit costs


How do you calculate economic profits?

Profits = revenues - expenses


What term refers to the portion of a corporation's profits that are paid to stockholders?

The term that refers to the portion of a corporation's profits paid to stockholders is "dividend." Dividends are typically distributed in cash or additional shares and are usually paid on a regular basis, such as quarterly or annually. Companies may choose to reinvest profits back into the business instead of paying dividends, depending on their growth strategy and financial health.


Do with your profits?

Using profits wisely is crucial for sustaining and growing a business. Reinvesting a portion of profits back into the business can fund expansion, improve products, or enhance marketing efforts. It's also important to allocate funds for savings, debt repayment, and shareholder distributions to ensure long-term stability and stakeholder satisfaction. Ultimately, a balanced approach that considers both growth and financial health is key.

Related Questions

What are the various sourceof finance?

IMPORTANT SOURCES OF FINANCE FOR BUSINESSShort term finance: bank credit, trade credit, instalment credit, customer advances.Medium term finance: issue of shares, issue of debentures, loans from banks and other financial institutions, public deposits (for existing concerns), ploughing back of profits (for existing concerns).Long term finance: issue of shares, issue of debentures, loans from financial institutions, ploughing back of profits( for existing concerns).


How do you paraphrase Is my team ploughing?

''Is my team ploughing'' can be rephrased as "Are my friends ploughing the fields?"


Is the word ploughing a noun?

No, "ploughing" is a verb. The noun form of "ploughing" is "plowing."


When was Is My Team Ploughing created?

Is My Team Ploughing was created in 1896.


When was National Ploughing Championships created?

National Ploughing Championships was created in 1931.


What is the difference between ploughing and plowing?

Ploughing is the correct spelling, plowing is the US spelling.


When was the National Ploughing Association founded?

The National Ploughing Association (NPA) was founded in 1931. They often hold competitions featuring the best in hand made ploughs made from a variety of materials.


What is summer ploughing?

Summer ploughing is the practice of ploughing fields during the summer months in preparation for planting crops in the next growing season. This helps to break up and turn the soil, making it easier for seeds to be sown and promoting better plant growth. Summer ploughing also helps to control weeds and pests, leading to a more successful harvest.


How is summer ploughing useful?

Ploughing one month in advance i.e. in the month of May for kharif crops is known as summer ploughing. There are the three usual harvests known as the kharif or autumn (June-September), the rabi or spring (October-March) and zaid or extra harvest (March-June). Summer ploughing helps to kill weeds, hibernating insects and disease-causing organisms by exposing them to the summer heat. Summer ploughing of groundnut is always advantageous.


What does a ploughing machine do?

it turns the soil to airate


What jobs did a reeve supervise?

harvesting and ploughing.


What are the steps in preparation?

ploughing levelling manuring