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Long as a Firm Does Not Pay Out 100% of Its

question 33

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long as a firm does not pay out 100% of its earnings, the firm's annual profit that is retained in the business (i.e., the addition to retained earnings) is another source of funds for a firm's expansion.


Definitions:

Charges

Fees or prices asked for goods and services provided.

Energy Tax Credit

A government incentive that reduces the tax bill of individuals or businesses that make energy-efficient improvements or investments.

Heat Pump

A device that transfers heat energy from a source of heat to what is called a thermal reservoir, commonly used for heating and cooling buildings.

Watts

A unit of power in the International System of Units (SI) that measures the rate of energy transfer or conversion.

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