The of a Professional Corporation Share in the Profits and Losses

question 79

Multiple Choice

The of a professional corporation share in the profits and losses of the firm in proportion to how many shares they own.

• A)Partners
• B)Shareholders
• C)Responsible billing partners
• D)Sole proprietors

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Definitions:

Deficit

A debit balance in the retained earnings account.

Retained Earnings

The portion of net earnings not distributed as dividends but retained by the company to reinvest in its core business or to pay debt.

Treasury Stock

Shares that were once issued and outstanding but were subsequently repurchased by the company, reducing the number of shares on the market.

Organizational Expenses

Costs related to the formation and operation of a business entity, such as legal fees, accounting services, and incorporation fees.