The payments made to shareholders from a firm's profits are called

Question

Quizplus · Accepted Answer

Dividends are the payments made to shareholders from a firm's profits. Option A is incorrect as there is no such thing as owner subsidies. Option B is incorrect as principal usually refers to the amount borrowed, not the payments made to shareholders. Option C is incorrect as coupon payments refer to the interest paid on fixed-income securities. Option D is incorrect as retained earnings refer to profits that are reinvested in the company rather than distributed to shareholders as dividends.

The Payments Made to Shareholders from a Firm's Profits Are