L3M1 Exam Dumps : Procurement and Supply Environments

Explanation

This is normally true, often resulting in greater complexity in managing public sector organisations.

Explanation

This is the standard definition, widely used, and given in your textbook.

Explanation

Payment of high salaries and large allowances, may, fairly obviously reduce the amount of profit which can be retained for capital growth. If money is being distributed in this way, it isn't being re-tained.

A profitable company has a choice: to pay dividends to a greater or lesser extent; or retain some of its profits to a greater or lesser extent in the form of retained capital - capital growth.

Increased sales and increased profit may result in increased capital growth, all other things being equal, depending on the firm's dividend policy.