From the words lettered A to D, choose the word that best completes each of the following sentences. The company has paid dividends to its________
Question 1 Report
From the words lettered A to D, choose the word that best completes each of the following sentences.
The company has paid dividends to its________
Answer Details
The correct answer is shareholders.
A shareholder is a person or organization that owns one or more shares of stock in a company. When a company makes a profit, it may choose to distribute a portion of those earnings to its shareholders as dividends. Therefore, if a company has paid dividends, it means that it has given a portion of its profits to its shareholders.
Buyers are individuals or organizations who purchase goods or services from a company. Wholesalers are intermediaries who purchase goods in bulk from manufacturers and sell them to retailers. Consumers are individuals or households who purchase and use goods and services for personal consumption. These groups are not typically paid dividends by a company.
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