ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
A distribution of a portion of a company’s earnings
A
interest
B
earnings
C
profit
D
dividends
Explanation: 

Detailed explanation-1: -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-2: -Dividend Meaning A dividend can be described as a reward that publicly-listed companies extend to their shareholders, and its source is the company’s net profit. Such rewards can either be in the form of cash, cash equivalent, shares, etc.

Detailed explanation-3: -A dividend is a distribution of a portion of a company’s earnings, decided by the board of directors. The purpose of dividends is to return wealth back to the shareholders of a company.

Detailed explanation-4: -Dividends: A distribution of a portion of a company’s earnings, decided by the board of directors, paid to a class of its shareholders.

Detailed explanation-5: -A dividend is a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business (called retained earnings).

There is 1 question to complete.