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An entrepreneur reinvests part of the profit into the enterprise. What thinking does this show?

Answer and explanation

Correct answer: Growth and stability thinking

Reinvestment means using part of earned profit to strengthen the business, for example by buying equipment, improving quality, expanding capacity, training workers, or maintaining working capital. It can support future growth and stability instead of distributing all profit immediately. Reinvestment is not the same as avoiding profit; it is a deliberate choice to use profit for productive business purposes.

Related tags

ReinvestmentGrowthOwner’s FundsOwner S FundsSources Of Business FinanceBusiness StudiesClass 11 Mcq

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