A distribution of earnings to the stockholders of a corporation is a(n)
A) par distribution.
B) dividend.
C) earnings per share.
D) distributed payment.
E) common payment.

Question

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A distribution of earnings to stockholders of a corporation is known as a dividend. This is the payment made by the company to its shareholders for their investment in the company. Dividends can be paid out in cash, stock, or other forms of property.

A Distribution of Earnings to the Stockholders of a Corporation