PRC-3 · Chapter 2 · Question 45 of 61
A listed company declares a highly profitable year. The Board of Directors votes to distribute 30% of these profits directly to the shareholders as a cash reward. This payment is called a:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Dividend
Explanation
A dividend is the portion of corporate profits paid out to shareholders as a return on their equity investment in the company.
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