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Question

Ploughing back of profits means ____________ .

A
Earning of black money
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B
Dividends not claimed by shareholders
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C
Retaining the earnings
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D
Not paying dividends in a particular year.
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Solution

The correct option is C Retaining the earnings
Ploughing back of profits means not distributing all the profits to the shareholders and investing some profit back in the business. It basically means to retain or invest back the profits in the business.

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