Question

When a company is doing well, a portion of its profits may be split among stockholders in the form of __________.

A.
company loans
B.
additional stock
C.
dividend checks
D.
goods and services

Answer 1

C) Dividend checks

Step-by-step explanation:

Quoted from investopedia:

If a company has excess earnings and decides to pay a dividend to common shareholders, then an amount is declared, in addition to the date when this amount will be paid out to the shareholders. Usually, both the date and the amount is determined on a quarterly basis, after a company finalizes its income statement and the board of directors meets to review the company's financials.

A dividend is the distribution of some of a company's earnings to a class of its shareholders. Dividends are usually paid in the form of a dividend check. However, they may also be paid in additional shares of stock.