answersLogoWhite

0

In a corporation, profits are typically distributed to shareholders in the form of dividends, which are payments made based on the number of shares owned. Additionally, profits may be retained within the company for reinvestment in operations, research and development, or to strengthen the balance sheet. The decision on how to distribute profits is made by the board of directors and can vary based on the corporation's financial strategy and market conditions.

User Avatar

AnswerBot

2w ago

What else can I help you with?

Continue Learning about Accounting

What is the share of the profits from a corporation that is paid to the stockholder is known as?

The share of the profits from a corporation that is paid to the stockholder is known as a dividend. Dividends are typically distributed on a per-share basis, meaning that stockholders receive a certain amount for each share they own. The decision to pay dividends and the amount is determined by the corporation's board of directors and can vary based on the company's financial performance and strategy.


Who decides how profits should be spent in a corporation?

Ultimately, the Board of Directors decides how profits should be spent in a corporation.


A corporation gives out some of its profits in dividends to whom?

stockholders


How were profits distributed?

Profits are typically distributed among stakeholders based on the structure of the organization and its financial policies. In corporations, profits may be allocated to shareholders as dividends, reinvested in the business for growth, or used to pay down debt. In partnerships, profits are usually divided according to the partnership agreement. Additionally, some companies may set aside a portion for employee bonuses or community initiatives.


Is dividends of stocks in a corporation subject to double taxation?

Yes, dividends from stocks in a corporation are subject to double taxation. This occurs because the corporation pays corporate income tax on its profits, and then shareholders pay personal income tax on the dividends they receive from those profits. As a result, the same income is taxed at both the corporate and individual levels.

Related Questions

Profits of a corporation that is distributed to its stockholders?

dividends


Do stockholders provide a corporation with profits?

Stockholders do not directly provide a corporation with profits; rather, they invest capital by purchasing shares of the company's stock. This investment can help the corporation raise funds for operations and growth, which can potentially lead to profits over time. The profits generated by the corporation are then distributed to stockholders in the form of dividends or reinvested back into the business. Thus, stockholders play a crucial role in funding the corporation, but profits are ultimately derived from the company's business activities.


Match each type of business with the person or persons who get to keep the business's profits.?

In a sole proprietorship, the individual owner retains all profits. In a partnership, profits are shared among the partners according to their agreement. In a corporation, profits are distributed to shareholders in the form of dividends, while the corporation itself also reinvests some profits for growth. In a limited liability company (LLC), profits can be distributed to members according to their ownership percentages or as outlined in the operating agreement.


Which form of business organization is taxed twice?

a C corporation the corporation is a separate entity who's profits are taxed then what's left of those profits are distributed/shared by the individual share holders who will be taxed on their individual share of the profits. Where as in a S corporation, subchapter corporation, the corporation entity I believe doesn't get taxed only the individual share holders do. Most small businesses are S corporations.


what Are a share of the corporation's profits that are distributed to shareholders?

A share of a corporation's profits that is distributed to shareholders is known as a dividend. Dividends are typically paid out in cash or additional shares and represent a portion of the company's earnings allocated to its shareholders. The decision to distribute dividends and the amount is determined by the company's board of directors and is influenced by factors such as profitability, cash flow, and future investment plans.


What is the portion of the corporation profits paid to shareholders is referred to as?

The portion of a corporation's profits paid to shareholders is referred to as a dividend. Dividends are typically distributed on a per-share basis and can be paid in cash or additional shares of stock. Companies often distribute dividends as a way to share their profits with investors, reflecting their financial health and commitment to returning value to shareholders.


Who Match each type of business with the person or persons who get to keep the business's profits.?

In a sole proprietorship, the individual owner keeps all the profits. In a partnership, profits are typically shared among the partners according to their agreement. In a corporation, profits are distributed to shareholders through dividends, while retained earnings can also be reinvested in the business. In an LLC (Limited Liability Company), profits are usually distributed to members based on their ownership interests or as outlined in the operating agreement.


What is the share of the profits from a corporation that is paid to the stockholder is known as?

The share of the profits from a corporation that is paid to the stockholder is known as a dividend. Dividends are typically distributed on a per-share basis, meaning that stockholders receive a certain amount for each share they own. The decision to pay dividends and the amount is determined by the corporation's board of directors and can vary based on the company's financial performance and strategy.


A corporation gives out its profits as dividends paid to its?

Stockholders


What term refers to the portion of a corporation's profits that are paid to stockholders?

The term that refers to the portion of a corporation's profits paid to stockholders is "dividend." Dividends are typically distributed in cash or additional shares and are usually paid on a regular basis, such as quarterly or annually. Companies may choose to reinvest profits back into the business instead of paying dividends, depending on their growth strategy and financial health.


Who decides how profits should be spent in a corporation?

Ultimately, the Board of Directors decides how profits should be spent in a corporation.


Payments of cash by a corporation to its stockholders are called what?

Payments of cash by a corporation to its stockholders are called dividends. Dividends are typically distributed from a corporation's profits and are a way for companies to share their earnings with shareholders. They can be paid in cash or in additional shares of stock, but cash dividends are the most common form.