A company’s financial manager retains earnings: A) for the benefit of the owners B) for the benefit of the creditors (lenders) C) in order to reduce taxes D) in order to reduce the company’s book value Solution RETAINED EARNINGS ARE A PART OF NET INCOME THAT IS REINVESTED BY A PUBLIC LIMITED COMPANY IN ITS BUSINESS AFTER PAYING THE DIVIDENDS TO THE COMMON STOCKHOLDERS(EQUITY).IT IS THE DISCRETION THE FINANCE MANAGER HOE HE USES THE RETAINED EARNINGS FOR THE BENEFIT OF BUSINESS .HE MAY DIVERT THE FUNDS TOWARDS THE EXPANSION OF THE BUSINESS,DEVELOPMENT OF THE BUSINESS OR PAYING OF OFF THE OUTSTANDING DEBT..