In a corporation, the authority to spend profits typically lies with the board of directors and executive management. They make decisions regarding the allocation of profits, such as reinvesting in the business, paying dividends to shareholders, or funding new projects. Shareholders, while they have a say in major corporate decisions during annual meetings, do not directly control day-to-day spending. Ultimately, the corporation's bylaws and governance structure dictate the specific processes and approvals required for spending 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.
dividends
stock A+
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.
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.
Stockholders
Ultimately, the Board of Directors decides how profits should be spent in a corporation.
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.
Stockholder.
dividends
Stockholder.
Stockholder.
The corporation announced record profits for the fiscal quarter.
The goal of a corporation is to maximize profits. Furthermore, the goal of a publicly traded corporation is to maximize value for its shareholders.
stock A+
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.
stockholders