What is the significance of including 'Limited' or 'Ltd' in a company name, and why are retained earnings important for a business?

8.1.1 A company must include 'Limited' or 'Ltd' in its name to indicate that it is a separate legal entity and that the liability of its shareholders is limited to the amount they have invested in the company. This protects the personal assets of the shareholders from the company's debts.

8.1.2 It is important for a business to keep retained earnings because they represent accumulated profits that can be reinvested into the business for future growth, expansion, funding new projects, or strengthening its financial position to absorb potential losses.

8.1.3
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