By Way of Which of the Following May Corporations Distribute

question 6

Multiple Choice

By way of which of the following may corporations distribute their income to shareholders?

• A) Allocations
• B) Grants
• C) Dividends
• D) Provisions
• E) Allowances

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Definitions:

Market Rate

The prevailing interest rate available in the marketplace on deposits, debts, or loans.

Nominal Rate

The Nominal Rate is the interest rate stated on a loan or financial product, not taking into account inflation or other factors that could affect the real value of the interest.

Premium

An amount paid in excess of a standard price or value, often related to insurance policies, bonds above par, or quality products.

Annual Amortization

The process of spreading out a loan or intangible asset cost over a specific period of time for accounting and tax purposes.