DQ2.5

Suggest two ways retained profits may decrease

DQ2.10

Explain the following in non-technical language that a business person who has not read this text would understand:

1. Why is net profit part of shareholders equity?
2. Why are dividends to shareholders not considered to be an expense in calculating net profit? Employee wages are considered to be an expense, as is the cost of products delivered to customers, and shareholders must be kept happy, as must employees and customers.