What term describes the income remaining to a company after taxes and dividends are paid?

The term that best describes the income remaining to a company after taxes and dividends are paid is "Retained Earnings." This concept refers specifically to the portion of net income that is not distributed to shareholders as dividends but is instead retained in the business for reinvestment or to pay off debt.

Retained earnings are crucial for the long-term growth and sustainability of a company, as they provide a source of internal funding for new projects, research and development, and other capital expenses. This is key to expanding operations and improving the financial health of the company.

In contrast, the other choices represent different financial metrics: operating income focuses on profits derived from core business operations; net profit refers to total earnings after all expenses, including taxes and interest, are deducted; and gross income relates to revenue minus the cost of goods sold without considering operating expenses or taxes. Understanding these distinctions is essential for grasping the financial position and strategy of a business.