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GCSE Business 2020-2022 OCR

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Question:

What is Retained Profits, and give Advantages and Disadvantages for it

Author: eric_galvao



Answer:

-This is simply either Investing the Profits back In, or just Taking it for themselves A: No Interest needs to be Paid] A: Owners keep the Control of the Profits and therefore the Business D: If the Business is Suffering from Temporary Finance Problems, then it'll be Unlikely that there is Profits Retained then D: The Growth of the Business may Slow Down if its the only Source of Finance D: Shareholders in the Company may feel Upset that their Dividend Payments aren't Appreciated


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