general reserve

Definition

Any retained earnings from a company's profits. General reserves can be divided into either specific, general or legal. Specific reserves can include a reassignment of dividends to shareholders; general reserves are saved to offset potential future losses; legal reserves can include money set aside for litigation or revaluation.

Use general reserve in a sentence

After allocating the company's profit to the necessary places, the general reserve was left over and divided among shareholders as dividends.

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