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17y ago

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What is bank customers share of the profits made on loans?

Savings account interest is the bank customer's share of the profits made on loans.


Ask us anythingA. Sole proprietorship Profits paid out as dividends B. Partnership Sharing of profits C. Corporation No profits made D. Government corporation All profits retained?

A sole proprietorship typically allows the owner to take profits directly, often treated as personal income rather than dividends. In a partnership, profits are shared among partners based on their agreement. A corporation can distribute profits as dividends to shareholders, but if no profits are made, no dividends are paid. Government corporations generally reinvest any profits back into the organization rather than distributing them.


Are dividends considered capital gains?

Dividends are not considered capital gains. Capital gains are profits made from the sale of an investment, while dividends are payments made by a company to its shareholders from its profits.


How do mutual funds generate profits?

Mutual funds generate profits through a combination of fees charged to investors and the performance of the investments held within the fund. Fees are collected for managing the fund, and profits are made when the value of the investments within the fund increase over time.