The decision regarding what to do with profit of the period consists in:
A) Distributing the profit entirely to the shareholders as dividends.
B) Not distributing profit at all,and the shareholders reinvest their claim in its entirety in the business.
C) Distributing the profit partially to the shareholders as dividends,and the balance is considered to be an increase of the investment of the shareholders in the proportion of their previous contributions.
D) Choosing among any of the previous possibilities.

Question

Quizplus · Accepted Answer

The decision regarding the use of profits can include distributing all profits as dividends, reinvesting all profits back into the business, or a combination of both. This means that companies have the flexibility to choose among these options based on their financial strategy, shareholder expectations, and future investment needs.

The Decision Regarding What to Do with Profit of the Period