A 15% penalty surcharge on earnings retained in a corporation to avoid the higher personal income taxes to which they would be subject if paid out as dividends to the owners.
A company's predetermined approach on managing the distribution of profits to its shareholders versus retaining earnings for reinvestment in the business.
Plow back refers to the practice of reinvesting a company's earnings back into the business rather than distributing those profits as dividends to shareholders. Typically employed by smaller, fast-growing companies, plow back is a strategy aimed at fueling further growth and expansion.
