Asked by Camila Almeida on Jul 21, 2024
Verified
Each year, Alexandra receives a payment for the stock she owns within the company where she is employed. The amount of the annual payment fluctuates based on the company's net profits. This is referred to as ______.
A) an asset
B) a liability
C) a dividend
D) equity
Dividend
A portion of a company's earnings, decided by the board of directors, to be distributed among shareholders, typically in the form of cash payments or additional shares.
Net Profits
The amount of money left over after all expenses, taxes, and deductions are subtracted from a company's total revenue.
- Elucidate on essential financial terminology like principal, interest, and dividends.
Verified Answer
MG
Melissa GobleJul 21, 2024
Final Answer :
C
Explanation :
The payment Alexandra receives is based on the company's net profits and is given to shareholders as a distribution of earnings. This is known as a dividend.
Learning Objectives
- Elucidate on essential financial terminology like principal, interest, and dividends.