After-tax profits must be paid to stockholders as dividends.

Name: After-tax profits must be paid to stockholders as dividends.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

After-tax profits do not necessarily need to be paid as dividends to stockholders. The company can choose to reinvest these profits in the business, buy back stocks, or use them for other purposes. Dividends are a decision made by the company's management and approved by the board of directors.

After-Tax Profits Must Be Paid to Stockholders as Dividends