The portion of a corporation's ________ that the firm pays out each period to shareholders is known as dividends.

Question

Quizplus · Accepted Answer

Dividends are a portion of the profits that a corporation pays out to its shareholders. Therefore, the best choice is B, profits. Stocks (A) represent ownership in a corporation, bonds (C) represent debt, and revenues (D) are the total amount of money a company earns from its sales or services, which may or may not be distributed as dividends.

The Portion of a Corporation's ________ That the Firm Pays