Stockholders Share in the Profits of a Corporation

question 175

Multiple Choice

Stockholders share in the profits of a corporation

• A)in proportion to their years of stock ownership
• B)in proportion to their ownership of stock
• C)equally regardless of number of shares owned
• D)only if they participate in firm management decisions
• E)only if they attend stockholders' meetings

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Definitions:

Tax-transfer System

The governmental mechanism by which taxes are collected from individuals and businesses, and redistributed through spending programs, often targeting social welfare and public services.

Progressive

Relating to or advocating for progress, change, or improvement, as opposed to wishing to maintain the status quo.

Proportional

Corresponding in size or amount to something else; having a constant relation in degree or number.

Bimodal

Characterized by or having two distinct modes or peaks in a distribution or set of data.