Dividend refers to the portion of a corporation's profits that are distributed to its stockholders. It represents a return on investment for the shareholders and is typically paid out in cash or additional shares of stock. It is different from payments to lenders, legal claims on assets, or prepayments of obligations.

Solved

Dividend Refers to

Question 112

Multiple Choice

Dividend refers to

A) a corporation's regular payments to lenders.
B) a payment of part of the corporation's profits that are distributed to stockholders.
C) a lender's legal claim on the assets of a bankrupt corporation.
D) a prepayment of a corporation's legal obligation.

Correct Answer: