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Having some funds to keep back- Retained earnings (REs) is one of the primary features of a successful business. Small businesses that are still growing need to have some funds in reserve for reinvestment
HOW DO SMALL BUSINESSES USE RETAINED EARNINGS
Having some funds to keep back- Retained earnings (REs) is one of the primary features of a successful business. Small businesses that are still growing need to have some funds in reserve for reinvestment so that the business continues to progress. Usually, some people choose to regard retained earnings as retained trading profits or earnings surplus because of how the money is realized.
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