PRC-3 · Chapter 2 · Question 59 of 61
A corporation generates a massive net profit. The Board of Directors decides to distribute a portion of this profit as a cash reward to all existing shareholders. This payment is officially termed a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: B) Dividend
Explanation
A dividend is the distribution of a portion of a company's earnings to its shareholders, determined by the board of directors as a return on investment.
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