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
Solution
The answer is: cash dividend payments.
Step by Step Explanation:
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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.
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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.
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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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