<Li> Tax treatment of dividends, and </Li> <Li> Funds required for reinvestment in the corporation (called retention). </Li> <P> A number of factors affect the decision of the amount of profit that a corporation should retain, including: </P> <Ul> <Li> Quantum of net profit . </Li> <Li> Age of the business enterprise </Li> <Li> Dividend policy of the corporation </Li> <Li> Future plan regarding modernization and expansion . </Li> </Ul>

The after-tax earnings of a corporation that are not paid out to stockholders are called​