Final answer:
In a proprietary colony, the Proprietors have no responsibilities except to collect the profits.
Step-by-step explanation:
In a proprietary colony, the Proprietors have no responsibilities except to collect the profits. This statement is True. In a proprietary colony, the colony was granted as a charter to an individual or group of individuals, known as the Proprietors, who had full control over both the land and the profits. They were usually responsible for managing and governing the colony, including collecting the profits generated by the colony's economic activities. Generally Accepted Accounting Principles (GAAP) do not mandate the distribution of earnings to stockholders for profitable companies. Instead, GAAP focuses on providing a standardized framework for financial reporting, ensuring transparency and comparability in financial statements. The decision to distribute earnings to stockholders, in the form of dividends, is at the discretion of the company's management and board of directors. While profitable companies often choose to distribute dividends as a way to share profits with stockholders, it is not a requirement under GAAP. Companies can reinvest their earnings back into the business for growth, debt reduction, or other strategic initiatives without violating accounting principles. The decision to pay dividends is influenced by various factors, including the company's financial goals, capital needs, and overall business strategy.