A Reason Why Profits May Be Retained in a Business

question 57

Multiple Choice

A reason why profits may be retained in a business rather than withdrawn by the owners is:

• A) to fund future growth of the business.
• B) because the business is able to generate greater returns on the funds than could be obtained if the owner invests them elsewhere.
• C) to gain tax advantages.
• D) all of the above.

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Definitions:

Long-term Potentiation

A lasting enhancement in signal transmission between two neurons that results from stimulating them simultaneously, believed to be a cellular mechanism underlying learning and memory.

Neurotransmitters

Chemical substances involved in the transmission of neural impulses from one neuron to another.

Glutamate

A major neurotransmitter in the nervous system that plays key roles in brain development, learning, and memory.

Retrograde Amnesia

Failure to remember events that occurred prior to physical trauma because of the effects of the trauma.