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Profits of a firm that are distributed or given out to its investor are called -

Profits of a firm that are distributed or given out to its investor are called - Correct Answer Dividends

A dividend is the distribution of some of a company's earnings to a class of its shareholders, as determined by the company's board of directors. Common shareholders of dividend - paying companies are typically eligible as long as they own the stock before the ex - dividend date. Dividends may be paid out as cash or in the form of additional stock.

Related Questions

A and B were two partners in a firm sharing profits in 3 ∶ 2. In the year 2015, the profit of the firm was Rs. 10000 which has been duly distributed among A and B. Later on they decided that C, their manager will also be treated as partner in the firm from beginning of year 2015 and will be entitled to 1/6 of the share in the firm. They decided to transfer 10% of the profits to general reserve. Redistribute the profits and find the amount of profit to be provided or taken back from B in new ratio.
A, B and C are partners in a firm. C retires and X admitted as a new partner. The firm did not give a public notice on the change but continued its business in its old firm name. Z, a customer of the firm, deals with the firm after the change and the firm becomes indebted to him:
A', 'B' and 'C' are partners in a partnership firm named A, B & C. 'A' retires from the firm without giving any public notice. Thereafter, an existing creditor lends Rs. ten lakh to the firm on the basis of his knowledge that 'A', 'B' and 'C' are the three partners in the firm. This amount remains unpaid by the firm. The creditor wants to recover the unpaid loan amount from the firm.
A and B are partners sharing profits in the firm in the ratio of 2 : 3. Goodwill appears in the books of firm at Rs. 10,000. C joins the firm for $$\frac{1}{5}$$ share of profits. His share of Goodwill is estimated to be Rs. 15,000. The old partner's account will be credited with Goodwill by
In which of the following cases a partnership does not exist?
(1) Lender of money receiving profits.
(2) Servants or agents receiving profits.
(3) Widow or child of a deceased partner receiving profits.
(4) Seller of goodwill receiving profits.
Which of the following statements is/are false? (i) Capital profits can never be distributed as dividends to the shareholders. (ii) Dividends are paid out of profits and, therefore, do not affect the liquidity position of the firm. (iii) Every company should follow the policy of low dividend payment. (iv) Walter’s model suggests that dividend payment does not affect the market price of the share. Choose the correct answer from the code given below:
Which of the following statement(s) is/are false?
1. Capital profits can never be distributed as dividends to the shareholders.
2. Dividends are paid out of profits and, therefore, do not affect the liquidity position of the firm.
3. Every company should follow the policy of low dividend payment.
4. Walter's model suggests that dividend payment dose not affect the market price of the share.
Choose the correct answer
What is the importance of the term "Interest Coverage Ratio" of a firm in India? 1. It helps in understanding the present risk of a firm that a bank is going to give loan to. 2. It helps in evaluating the emerging risk of a firm that a bank is going to give loan to. 3. The higher a borrowing firm's level of Interest Coverage Ratio, the worse is its ability to service its debt. Select the correct answer using the code given below:
Identify three conditions that a firm must meet to practice price discrimination: A. The firm must have some control over the price and the product B. The firm must operate in the growth phase of its product life cycle C. The markets in which products are sold must be separable D. Price elasticity of demand for the product must differ E. The firm operates its plant at full capacity Choose the correct answer from the options given below:
The profits of a firm for the last five years are Rs. 80,000, Rs. 90,000, Rs. 70,000, Rs. 85,000 and Rs. 1,00,000 respectively. The goodwill of the firm is calculated on basis of three year purchase of average profits of five years. The value of goodwill is