ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A corporation is created when it is incorporated by a group of shareholders who share ownership of the corporation, represented by their holding of stock shares, and pursue a common goal. The vast majority of corporations have a goal of returning a profit for their shareholders.

Detailed explanation-2: -Shareholders, or stockholders, are the owners of a company’s outstanding shares, which represents a residual portion of the corporation’s assets and earnings as well as a percentage of the company’s voting power.

Detailed explanation-3: -Partnerships, often called general partnerships, are businesses with more than one owner. If you team up on a business venture without forming a legal business entity through the state, your business is a partnership by default.

Detailed explanation-4: -The capital raised by the issue of such shares is known as ownership capital or owner’s funds.

Detailed explanation-5: -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.