Dividends are best described by which of the following?
A) They are annual payments on bonds.
B) They are the earnings of the corporation.
C) They are payments to the shareholders from company earnings.
D) They are guaranteed payments to the common shareholders.

Question

Quizplus · Accepted Answer

Dividends are payments made by a corporation to its shareholders from its profits or earnings. They are not guaranteed payments and the amount and frequency of dividends may vary depending on the company's performance and policies. Dividends are not related to annual payments on bonds or the earnings of the corporation in general.

Dividends Are Best Described by Which of the Following