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The main advantage of retained earnings is that it does not need to be repaid and the company also does not have to pay interest over the retained profit. The demerit of having retained earnings is that the company might not have the sufficient retained earnings for making investmentThe advantages of retained earnings is that the company doesn't have to pay the money back, and we are not required to pay interest, rather than retained earnings.On the other hand, the disadvantages of retained earnings might make the company has insufficient funds.
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