Payments made by a corporation to its shareholders, in the form of either cash, shares or payments in kind, are called:
A)retained earnings.
B)net income.
C)dividends.
D)redistributions.
E)infused equity.

Question

Quizplus · Accepted Answer

Dividends are payments made by a corporation to its shareholders, either in cash, shares or payments in kind, as a return for their investment in the company. Retained earnings refer to the profits that a company chooses to reinvest in the business instead of distributing to shareholders. Net income is the total income earned by the company after all expenses are deducted. Redistributions and infused equity are not relevant terms in this context.

Payments Made by a Corporation to Its Shareholders, in the Form