Which Version of Profit Is Used as the Basis for Determining

question 14

Multiple Choice

Which version of profit is used as the basis for determining the amount of dividend paid to shareholders?

• A) Gross profit
• B) Profit after taxation
• C) Profit before taxation
• D) Operating profit

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Definitions:

Duty Of Care

The duty of all persons, as established by tort law, to exercise reasonable care in dealings with others. Failure to exercise due care, which is normally determined by the reasonable person standard, is the tort of negligence.

Breach

The failure to comply with or meet a legal duty, contract, or obligation.

Legally Recognizable Injury

Legally recognizable injury is a type of harm identified by law as a valid basis for a lawsuit.

Cases On Point

Legal cases that are directly relevant to the issue being discussed or decided in a current case.