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Effect of retained earnings on divisions of a company
When the company I work for earns a profit on a project by coming in under budget on expenses or by finishing before the project due date, would that be retained earnings?
The reason I ask is that sometimes one of our divisions will do better profit wise in the fiscal year than another division. Because of this the divisions that are not doing well still stay afloat, I think that is because the company puts the retained earnings back into the company. Could this be correct?
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