Advantages and Disadvantages of Retained Profits?

Answer

Retained profits are earnings that are kept after dividends and taxes are paid on them. Advantages to retained profit are that there is money available for growth and improvements to stay competitive. Disadvantages to retained profit are having to pay higher federal and state taxes.
Q&A Related to "Advantages and Disadvantages of Retained Profits..."
No share holder dividends - if a plc. Taxed on the profit - no matter what you do with it.
http://wiki.answers.com/Q/What_are_the_disadvantag...
Advantages: You are building equity in your company and therefore increasing the value of the shares. The company has the flexibiltiy to decide whether to use capital or borrowings
http://answers.yahoo.com/question/index?qid=200810...
A main advantages that a profit-making business enjoys is that if it is successful it earns money for its owners. Profit-making businesses also have the ability to generate income
http://www.ehow.com/info_8560192_advantages-disadv...
The retainer, (Short of Agency of Record and the right of first refusal) is the ideal business state for any agency. It is fixed revenue for the company; with this expected and trackable
http://www.quora.com/As-a-small-design-agency-what...
Explore this Topic
Retained profits are earnings that are kept after dividends and taxes are paid on them. Advantages to retained profit are that there is money available for growth ...
About -  Privacy -  AskEraser  -  Careers -  Ask Blog -  Mobile -  Help -  Feedback © 2014 Ask.com