Discuss Forum

1. Profits of a firm that are distributed or given out to its investors are called __

  • A. Bonds
  • B. Bonds
  • C. Bonds
  • D. Bonds

Answer: Option C

Explanation:

A dividend is a distribution of profits by a corporation to its shareholders.

When a corporation earns a profit or surplus, it is able to pay a proportion of the profit as a dividend to shareholders.

Dividends can provide stable income and raise morale among shareholders.


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