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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