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Question

is paid as a dividend to the shareholders.

A
Profit
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B
Loss
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C
Income
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D
Expense
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Solution

The correct option is A Profit
A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, the corporation is able to reinvest the profit in the business (called retained earnings) and pay a proportion of the profit as a dividend to shareholders.

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