34.1k views
5 votes
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.

User Jumble
by
8.4k points

No related questions found