In all states,Exercise & Fitness Club Company and other corporations can pay dividends from

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Quizplus · Accepted Answer

Dividends are paid from retained earnings, which are the profits that a company has earned and has chosen to keep rather than distribute as dividends in the past years. Retained earnings are a part of equity on the company's balance sheet and can be used for various purposes, including paying dividends to shareholders. Gross profits and net profits are used for calculating the amount of retained earnings, but they cannot be directly used to pay dividends. Surplus is a term used in some specific situations, such as non-profit organizations or insurance companies, and it does not apply to Exercise & Fitness Club Company or most corporations.

In All States,Exercise & Fitness Club Company and Other Corporations