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Income distributed to owner(s) for corporations is known as?

a) Dividends
b) Salary
c) Profit sharing
d) Retained earnings

1 Answer

1 vote

Final answer:

Income distributed to corporation owners in the form of profits is known as dividends. These are payments made to shareholders based on the number of shares they own.

Step-by-step explanation:

The income distributed to owners of corporations is known as dividends. A dividend is a direct payment made by a firm to its shareholders, typically from its profits. For every share a shareholder owns, they receive a portion of the profits. For example, a company that pays a dividend of 75 cents per share would lead to a shareholder owning 85 shares receiving a total of $63.75. Stable companies, like Coca-Cola and various utility companies, commonly provide dividends to their shareholders, who may hold these stocks for extended periods due to their consistent dividend payments.

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User Jumble
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