The board of directors for a corporation votes that a portion of the year's profits should be distributed to the owners of the company.What is this payment to the owners called?
A) investment
B) capital
C) salaries
D) dividends

Question

Quizplus · Accepted Answer

The payment to the owners of a corporation from its profits is called dividends. It represents a share in the company's profits and is distributed to shareholders based on the number of shares they own. The other options, such as investment or capital, relate to the initial funds put into the company or the ongoing expenses of running the business. Salaries refer to the compensation paid to employees of the company.

The Board of Directors for a Corporation Votes That a Portion