A dividend may be paid from undistributed net corporate profits.

Name: A dividend may be paid from undistributed net corporate profits.
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Question

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A dividend can be paid from the net corporate profits that have not been distributed as dividends in the past. This process allows companies to distribute profits to their shareholders even if they have not turned a profit in the current year. However, the payment of dividends is at the discretion of the company's board of directors, and it is not guaranteed.

A Dividend May Be Paid from Undistributed Net Corporate Profits