Question

5. Instead of distributing entire profit to the owners in the form of dividend , some profits are re-
invested in business in order to finance the future earnings of the business this is known as (1)
a ploughing back
b dividend
c working capital
d dividend stripping

6. Every business requires points to face the economic cycle. Economic cycle refers to the time period
between (1)
a buying raw material and making sales
b growth and recession
c borrowing money and repaying it
d commencement and winding up of business​

Answer 1

Answer:

1. a) ploughing back

2. b) Growth and recession

Explanation:

ploughing back means keeping money for reinvestment

2.. economic cycle consists of Boom, recession, depression and recovery