BANKING AFFAIRS

BANKING GENERAL KNOWLEDGE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Part of company’s earning or profit which is paid out to share holders is known as____
A
Premium
B
Dividend
C
Bonus
D
Sum Assured
Explanation: 

Detailed explanation-1: -Dividend is usually a part of the profit that the company shares with its shareholders. Description: After paying its creditors, a company can use part or whole of the residual profits to reward its shareholders as dividends.

Detailed explanation-2: -What Is a Dividend? A dividend is the distribution of a company’s earnings to its shareholders and is determined by the company’s board of directors. Dividends are often distributed quarterly and may be paid out as cash or in the form of reinvestment in additional stock.

Detailed explanation-3: -Dividends are payments a company makes to share profits with its stockholders. They’re paid on a regular basis, and they are one of the ways investors earn a return from investing in stocks. But not all stocks pay dividends.

Detailed explanation-4: -A dividend is a portion of the company’s profits paid to its shareholders. Profits represent ownership of shares of a company. Risk is only associated with the purchase of common stocks.

Detailed explanation-5: -A dividend is a payment a company can make to shareholders if it has made a profit. You cannot count dividends as business costs when you work out your Corporation Tax. Your company must not pay out more in dividends than its available profits from current and previous financial years.

There is 1 question to complete.