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.
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.
Dividends
the corporation's profits
Stockholders
Ultimately, the Board of Directors decides how profits should be spent in a corporation.
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
to pay dividends