When a Corporation Earns Profits,it Must Pass Them on to Shareholders

question 36

True/False

When a corporation earns profits,it must pass them on to shareholders in the form of dividends.

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Definitions:

Tax Receipts

The income received by the government from taxes. It represents the primary source of revenue for government operations.

Economic Activity

A term that encompasses all actions that involve the production, distribution, and consumption of goods and services within an economy.

Severe Recession

An extended period of significant decline in economic activity across the economy, typically characterized by high unemployment, low consumer spending, and reduced industrial production.

Fiscal Policy

Government policies regarding taxation and spending that influence the economy by changing the level of income and aggregate demand.