Rents Retained earnings are defined as profits. Multiple choice question . O distributed corporate C distributed sole proprietors ' C undistributed sole proprietors ' undistributed corporate The after-tax profits that are distributed to stockholders are called dividend (one word). In order to invest later in new plants and equipment, businesses use undistributed corporate profits, or retained earnings. When considering national income, general sales taxes, business property taxes, license fees, and custom duties are all included in the account called taxes on production and imports