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If a Corporation Does Not Distribute Profit to Its Stockholders

Question 55

Multiple Choice

If a corporation does not distribute profit to its stockholders, it might be that


A) no profit was earned by the corporation
B) profit was used to pay out dividends
C) the corporation has no stockholders
D) its losses were as large as its profit
E) profit was used to pay its board of directors, the first claimants to corporate profit

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