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单词 plough-back
释义 plough-back

The system of financing investment in firms by retaining profits. This is contrasted with financing investment by borrowing or issuing new first-degree price discrimination. The advantage of plough-back is that it retains control, and reduces gearing if the firm has borrowed in the past. The disadvantage is that complete reliance on internal finance limits a firm's possible growth rate, and it cannot be applied in new firms.

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更新时间:2025/1/22 17:48:11