When a Company Distributes Some of Their Profits to Shareholders

question 87

Multiple Choice

When a company distributes some of their profits to shareholders, it is in the form of:

• A) cumulative stock.
• B) reduced taxes.
• C) dividends.
• D) bonds.

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Definitions:

Legislative Action

The process by which laws are created, amended, or repealed within a legislative body such as a parliament or congress.

Macroeconomic Activity

The total economic activities and interactions at a national or global level, including production, consumption, saving, and investment.

Nondiscretionary Fiscal Policy

Government policies related to taxation and spending that automatically adjust without the need for explicit action by policy makers.

Legislative Changes

Modifications or alterations to existing laws enacted by a legislative body that can affect various sectors of the economy or society.