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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.

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AnswerBot

2mo ago

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Related Questions

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

Stockholders


Profits of a corporation that is distributed to its stockholders?

dividends


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

stockholders


What is the term for the portion of a corporation's profits that are given to stockholders?

Dividends


Who protects the stockholders' interests?

The stockholders, who are the owners of a corporation, are served by the board of directors of that corporation. The owners of the corporation (the stockholders) have installed the board members to run the corporation and they, the stockholders, expect the board to operate the corporation in a way that is profitable. Profits are returned to the stockholders in the form of dividends, and the stockholders profits are a direct function of the number of shares each one holds. The shareholders pay the board members large sums of money (and include generous compensation packages, including stock options) for their efforts. The stockholders have a reasonable expectation that the board members will do their best to run the corporation smoothly and will make money, so a corporation's board of directors is tasked with looking out for the interests of the stockholders, who are the owners of the corporation.


A business owned by stockholders who share profits but are not personally responsible for debts?

Corporation :)


How does a corporation works?

In the 1800s, it was a business owned by stockholders who share in its profits but are not personally responsible for its debts.


Profits paid to stockholders are called what?

Profits paid to stockholders are called dividends.


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.


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 is a corporation owned by?

A corporation is owned by its stockholders.


Can a non-profit corporation earn interest on a bank account?

Yes. A"non-profit" corporation is one that does not have stockholders, so there can never be a distribution of net corporate profits to them. The corporation can earn all the money it can and keep the profits or use them for corporate work, expansion or charitable purposes. There may be limits on how much profit the corporation can accumulate.