Profits the company keeps and reinvests in the firm are called a. retained earnings.
Retained earnings is the amount of profit left by a company after paying all direct costs, indirect costs, income taxes, and dividends to shareholders. This represents a portion of the company's equity that can be used to invest in new equipment, research and development, and marketing, for example.
Retained Earnings is a term used to describe a company's past profits that have not been paid out as dividends. Appears in the equity section of the balance sheet. This is a measure of all profits the company has made since its inception.
Learn more about retained earnings here: https://brainly.com/question/25998979
#SPJ4
