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Multiple Choice QuestionWhen the board of directors distributes some of a corporation's profits to the owners, it issues them as ______.Multiple choice question.common stockcash dividend paymentsretained earningsequity holdings

Question

Multiple Choice QuestionWhen the board of directors distributes some of a corporation's profits to the owners, it issues them as ______.Multiple choice question.common stockcash dividend paymentsretained earningsequity holdings

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Solution

The answer is: cash dividend payments.

Step by Step Explanation:

  1. A corporation's profits can be distributed in several ways, but the question specifically asks about the method used to distribute profits to the owners.

  2. Common stock, retained earnings, and equity holdings are all forms of ownership or investment in a company, but they are not methods of distributing profits.

  3. Cash dividend payments are a method used by corporations to distribute a portion of their profits to the owners. This is typically done on a regular basis (such as quarterly or annually) and is a way for the owners to receive a return on their investment in the company.

So, when the board of directors distributes some of a corporation's profits to the owners, it issues them as cash dividend payments.

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