A stockholder partakes of the profit of a l8imited liability business by receiving

Assessment: WAEC SSCE - Economics - 1992 (Objective) Subject: Economics

Question 1 Report

A stockholder partakes of the profit of a l8imited liability business by receiving
Answer Details
As a stockholder, you own a portion of the business you have invested in, which is represented by shares. When the business makes a profit, the profits are divided among the shareholders. This is done by paying out dividends, which are a portion of the profits distributed to each shareholder based on the number of shares they own. So, in summary, as a stockholder, you receive a share of the profits of the business in the form of dividends. You do not receive wages or salaries, nor are you entitled to gifts as a result of your ownership in the business.

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