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Q: What are profits earned by a corporation and given to shareholders called?
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What is the importance of business to your society?

ProfitAll business owners are operating with the expectations they will earn a profit. Ask any business student the primary goal of a corporation and she will recite, "to earn profits and increase the wealth of shareholders." How profits are earned varies depending on the industry, but the bottom line is of great importance to all business owners. Profits can either escalate the business to new levels of growth, or it can cause the company to dissolve after filing for bankruptcy.


What is retained profit?

The amount of revenue a business has left over after having paid all of its overhead expenses, income taxes, and dividends to shareholders is referred to as retained profits. This is the percentage of the capital asset which can be used to purchase equipment, R&D, and branding, for example.


What is the financial definition of the term net of when it is used in such as net of taxes net of special charges net of fees?

Net WorthWhile there is no doubt that the preference shareholders are the owners of the firm, the real owners are the ordinary shareholders who bear all the risk, participate in the management and are entitled to all the profits remaining after all possible claims of preference shareholders are met in full.Thus it can be said that,Average Ordinary Shareholders Equity = Net Worth Of CompanyReturn on Net Worth = Net Profit After Tax - Preference DividendAverage Equity of the Ordinary Shareholders Equity or Net WorthIt is probably the single most important ratio to judge whether the firm has earned satisfactory return for its equity shareholders or not. Its adequacy is judge by8 Comparing with the past records of the same firm8 Inter-firm comparison8 Comparison with the overall industry average


Define shareholders wealth?

A shareholder's wealth can be dependent on the stock price if they decide to sell it. It can also be earned in the form of dividends. Dividends are paid when a company makes a profit and decides to issue a dividend to shareholders instead of reinvesting the profit.


What does accumulated earnings mean?

The definition of accumulated earnings is the sum of the profits of a company after dividend payments since the inception of the company. Accumulated earnings are also called earned surplus, retained earnings, or retained capital.

Related questions

What is the importance of business to your society?

ProfitAll business owners are operating with the expectations they will earn a profit. Ask any business student the primary goal of a corporation and she will recite, "to earn profits and increase the wealth of shareholders." How profits are earned varies depending on the industry, but the bottom line is of great importance to all business owners. Profits can either escalate the business to new levels of growth, or it can cause the company to dissolve after filing for bankruptcy.


A corporation made up of many companies that receive certificates entitling them to dividends on profits earned?

Standard Oil Company


What are undistributed corporate profits called?

Undistributed corporate profits are also called IENR i.e. Income earned but nor receieved. These are the profits that shareholders may earn but will not receieve in their salary. Even I just read about it somewhere so I am guessing it is something like the deductions that are made in your salary apart from income tax.. Basically you earn that money on paper but you don't receieve it. A better explanation is welcomed


How did Robert Crandall earn his reputation?

Robert Crandall earned a reputation as the toughest executive in the airline industry by mercilessly pursuing the best return possible for the shareholders of American Airlines and AMR Corporation


Profits are payment earned from?

Entrepreneurship.


What are profits earned from?

From things you sell at a higher price from what you paid for.


Are profits earned from stocks taxed?

Profits from stocks & shares are classed as taxable income - and must be declared to the tax man.


What is retained profit?

The amount of revenue a business has left over after having paid all of its overhead expenses, income taxes, and dividends to shareholders is referred to as retained profits. This is the percentage of the capital asset which can be used to purchase equipment, R&D, and branding, for example.


The amount of money earned after subtracting the costs associated with that earning is known as?

profits


What are the profits of business telemarketing?

if you are an amazon seller i will help you to tell you that the most important thing is how to increase your profits, so I will introduce you to a tool that will double your profits for you to know more : snip.ly/tkynz2


What are the net yearly profits earned by the ten largest cosmetic companies?

The net yearly profits are approximately 250,000,000. That's triple of the yearly profits last year. Proactiv seems to be the leading competitor this year.


What is the financial definition of the term net of when it is used in such as net of taxes net of special charges net of fees?

Net WorthWhile there is no doubt that the preference shareholders are the owners of the firm, the real owners are the ordinary shareholders who bear all the risk, participate in the management and are entitled to all the profits remaining after all possible claims of preference shareholders are met in full.Thus it can be said that,Average Ordinary Shareholders Equity = Net Worth Of CompanyReturn on Net Worth = Net Profit After Tax - Preference DividendAverage Equity of the Ordinary Shareholders Equity or Net WorthIt is probably the single most important ratio to judge whether the firm has earned satisfactory return for its equity shareholders or not. Its adequacy is judge by8 Comparing with the past records of the same firm8 Inter-firm comparison8 Comparison with the overall industry average