A corporation can elect to allocate corporate profits into either

Question

Quizplus · Accepted Answer

Allocating profits into dividends or retained earnings is the best choice, as it provides flexibility for the corporation to reinvest in the business or distribute profits to shareholders. Interest payments do not benefit shareholders directly, and bonds are a form of debt financing rather than profit allocation. Stocks are a form of equity financing and do not involve profit allocation.

A Corporation Can Elect to Allocate Corporate Profits into Either