A company has a choice of whether to distribute dividends to common shareholders or to keep their profits in the company as retained earnings.

Name: A company has a choice of whether to distribute dividends to common shareholders or to keep their profits in the company as retained earnings.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

This statement is true. A company can choose to distribute its profits as dividends to common shareholders or keep the profits within the company as retained earnings for future growth or investments.

A Company Has a Choice of Whether to Distribute Dividends