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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.

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1mo ago

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Related Questions

What is a share of profits distributed to stockholders?

dividends


Profits of a corporation that is distributed to its stockholders?

dividends


What financial statement would you analyze to determine if a company distributed any of its profits to its shareholders?

What financial statement would you analyze to determine if a company distributed any of its profits to its shareholders?


The company profits paid out to shareholders are called?

Those distributed profits are called dividends, because the profit is divided among the various shareholders.


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.


Can accumulated profits be distributed as dividend?

Yes, to the extent of Earnings and Profits, there after it must be considered either return of capital to the extent of the shareholders basis or as long term capital gains.


What are the main functions of the dividends and profits?

Dividends are those where you get from the profits . dividend is that share or a part of profit of a company which is distributed among the share holders . if the the company gets more profit you can expect more return on your investment.


What type of stock receives an equal part of the profits on each to be distributed after all other obligations of a company have been satisfied?

Common :)


Can a dividend be distributed from a revaluation surplus?

No, a dividend cannot be distributed from a revaluation surplus. A revaluation surplus arises from the increase in the value of assets after revaluation and is considered a component of equity, but it is not part of distributable profits. Dividends can only be paid from retained earnings or profits generated from operations, ensuring that the company maintains sufficient capital for its ongoing obligations.


What word means share of profits paid to shareholders?

The word that refers to the share of profits paid to shareholders is "dividend." Dividends are typically distributed by corporations to their shareholders as a way to share profits and provide a return on their investment. The amount and frequency of dividends can vary based on the company's performance and dividend policy.


What type of stock receives an equal part of the profits on each share to be distributed after all other obligations of a company have been satisfied?

Common :)


What type of stock receives an equal part of the profits on each share to be distributed after all other obligation of a company have been satisfied?

common