Final answer:
The distribution of earnings of a corporation refers to how the profits and earnings are shared among the shareholders in the form of cash or additional stock.
Step-by-step explanation:
The distribution of earnings of a corporation refers to how the profits and earnings are shared among the shareholders. This can be done in the form of cash or through the issuance of additional stock.
For example, if a corporation earns a profit of $1 million, it may decide to distribute $500,000 in cash dividends to the shareholders. Alternatively, it can choose to distribute the earnings by issuing additional stock to the shareholders.
Overall, the distribution of earnings of a corporation is an important aspect of corporate finance as it determines how the profits are allocated among the shareholders.