ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Company profits distributed to stockholders.
A
Capital
B
Interest
C
Dividends
D
Rent
Explanation: 

Detailed explanation-1: -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).

Detailed explanation-2: -The profits arising out of such business operations are distributed to the shareholders in the form of Dividend. Dividend includes interim Dividend. Dividend means the money paid to the shareholders out of the profits of the Company.

Detailed explanation-3: -A dividend is a distribution of a portion of a company’s earnings to its shareholders.

There is 1 question to complete.