UrbanPro

Take Class 12 Tuition from the Best Tutors

  • Affordable fees
  • 1-1 or Group class
  • Flexible Timings
  • Verified Tutors

Search in

Make a list of three limitation of retained profits.

Asked by Last Modified  

Follow 1
Answer

Please enter your answer

IELTS Trainer

Disadvantages of Retained Earnings: Retained earnings are the result of conservative dividend policy of the company and are associated with following demerits: i. Improper Utilization of Funds: If the purpose for utilization of retained earnings is not clearly stated, it may lead to careless spending...
read more

Disadvantages of Retained Earnings:

Retained earnings are the result of conservative dividend policy of the company and are associated with following demerits:

i. Improper Utilization of Funds: If the purpose for utilization of retained earnings is not clearly stated, it may lead to careless spending of funds.

ii. Over-capitalization: Conservative dividend policy leads to huge accumulation of retained earnings leading to over-capitalization.

iii. Lower Rate of Dividend: Retained earnings do not allow shareholders to enjoy full benefit of the actual earnings of the company. This creates not only dissatisfaction among the shareholders but also adversely affect the market value of shares.

read less
Comments

Related Questions

Distinguish between public sector and private sector.
Key difference is public sector is to serve the citizens of their country, aided by govt., job security, promotions on basis of seniority private sector is to earn profits for self, aided and administered...
Apollo

Which is best business learning class in pune?

Best business school in Pune that i would refer is Symbiosis Institute of Business Management.
Priya
0 0
5
Discuss any three advantages of international business.
The advantages of international business are discussed below: i. Employment: International business helps in increasing employment opportunities in the export-oriented industries. ii. Growth of economy:...
Rajeev
0 0
7
Why is cellular phone or cellphone called a mobile phone?
Because we can carry it from one place to other
Mohammad
0 0
5

Now ask question in any of the 1000+ Categories, and get Answers from Tutors and Trainers on UrbanPro.com

Ask a Question

Related Lessons

Profession and its features - Type of Economic Activities, NCERT Business Studies
CBSE Class 11th, OC/OCM - State Board, ICSE/ISC - Commercial Studies, IGCSE/GCSE - Economics


Business and its Features-Economic Activities-ICSE Class 9 Commercial Studies, CBSE/NCERT Class 11 Business Studies
Economic Activities - Business:Meaning and its features Commerce Std XI/FYJC - Organisation of Commerce and Management (OC/OCM)

Qualities of a good entrepreneur - Class 12 / Std- XII th (Commerce - Economics)
Characteristics/Traits of a successful entrepreneur - CBSE/NCERT - Business Studies IGCSE Business Studies

Global Enterprises at a Glance, MNC and other international forms of business
Global Enterprises: These companies have many markets other than their own country market (domestic market) to sell their product. Their products are available nearly all over the world. Why has globalization...

Recommended Articles

Urmila is a passionate teacher with over 8 years of experience in teaching. She is currently pursuing her Ph. D. She provides classes for Class 11, Class 12, MBBS and Medical tuition.  Urmila began her career in teaching long before she became a teacher. She used to provide classes for foreign national students in her college...

Read full article >

Raghunandan is a passionate teacher with a decade of teaching experience. Being a skilled trainer with extensive knowledge, he provides high-quality BTech, Class 10 and Class 12 tuition classes. His methods of teaching with real-time examples makes difficult topics simple to understand. He explains every concept in-detail...

Read full article >

Radhe Shyam is a highly skilled accounts and finance trainer with 8 years of experience in teaching. Accounting is challenging for many students and that’s where Radhe Shyam’s expertise comes into play. He helps his students not only in understanding the subject but also advises them on how to overcome the fear of accounts...

Read full article >

Mohammad Wazid is a certified professional tutor for class 11 students. He has 6 years of teaching experience which he couples with an energetic attitude and a vision of making any subject easy for the students. Over the years he has developed skills with a capability of understanding the requirements of the students. This...

Read full article >

Looking for Class 12 Tuition ?

Learn from the Best Tutors on UrbanPro

Are you a Tutor or Training Institute?

Join UrbanPro Today to find students near you
X

Looking for Class 12 Tuition Classes?

The best tutors for Class 12 Tuition Classes are on UrbanPro

  • Select the best Tutor
  • Book & Attend a Free Demo
  • Pay and start Learning

Take Class 12 Tuition with the Best Tutors

The best Tutors for Class 12 Tuition Classes are on UrbanPro

This website uses cookies

We use cookies to improve user experience. Choose what cookies you allow us to use. You can read more about our Cookie Policy in our Privacy Policy

Accept All
Decline All

UrbanPro.com is India's largest network of most trusted tutors and institutes. Over 55 lakh students rely on UrbanPro.com, to fulfill their learning requirements across 1,000+ categories. Using UrbanPro.com, parents, and students can compare multiple Tutors and Institutes and choose the one that best suits their requirements. More than 7.5 lakh verified Tutors and Institutes are helping millions of students every day and growing their tutoring business on UrbanPro.com. Whether you are looking for a tutor to learn mathematics, a German language trainer to brush up your German language skills or an institute to upgrade your IT skills, we have got the best selection of Tutors and Training Institutes for you. Read more