is paid as a dividend to the shareholders.

Profit

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Loss

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Income

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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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Similar questions

What is paid as a dividend to the shareholders?

Q. A ______ is allocated as a fixed amount per share, with shareholders receiving a dividend in proportion to their shareholding.

Q. Excessive ploughing-back may cause dissatisfaction among the shareholders as they would get _______ dividends.

Q. A company declares

8

percent divided to the shareholders. If a man receives

R s . 2840

as his dividend, find the nominal value of his shares.

Payment of fixed rate of dividend to preference shares may enable a company to declare higher rates of dividend for the equity shareholders in good times.

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