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Which one of the following represents the Savings of the Private Corporate Sector?
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- Dividends paid to shareholders
- Total profits of a company
- Undistributed profits
- Excess of income over expenditure
- Dividends paid to shareholders
Correct Option: C
For private corporate sector, retained profits adjusted for non operating surplus/deficit is considered as its Net Saving. Retained profits are those which are ploughed back into business after making commitments to depreciation provision for various fixed assets, debts, government and to share-holders.
