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A corporation distributes its profits as dividends primarily to its shareholders, who own shares of the company's stock. The amount and frequency of the dividends depend on the company's financial performance and its dividend policy. Shareholders typically receive dividends in proportion to the number of shares they own, though some companies may opt for different distribution methods. Additionally, dividends may be reinvested in the company through dividend reinvestment plans (DRIPs).

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3mo ago

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Related Questions

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

Stockholders


A coorporation gives out its profits as dividends paid to whom?

stockholders


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.


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.


Profits paid to stockholders are called what?

Profits paid to stockholders are called dividends.


Dividends are paid from?

Dividends are paid from corporate profits.


When should a corporation pay dividends to its shareholders?

A corporation should pay dividends to its shareholders when it has excess profits that it wants to distribute to them as a form of return on their investment. Dividends are typically paid on a regular basis, such as quarterly or annually, depending on the company's financial performance and dividend policy.


What is a feature of a sole proprietorship?

profits paid out as dividends


What does a shareholder get when dividend is paid?

A share of a company's profits


How are corporate profits taxed?

Earnings are taxed first as corporate profits, then as personal income after dividends are paid.


What does a shareholder qet when a dividend is paid?

A shareholder gets a portion of the companies profits when a dividend is paid.


What are profits earned from?

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