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KatRina [158]
3 years ago
11

What happens to profits of domestic financial corporations

Social Studies
2 answers:
salantis [7]3 years ago
7 0

The profits of domestic financial corporations are always distributed.

Corporate profits are the excess revenue received by corporations over their accounting cost of production.

<em>One portion of the profits</em> is used to pay corporate profits taxes. These taxes are paid to the government.

<em>The second portion</em> is used  by the corporations to finance capital investment. This portion is also called retained earnings. These are profits not paid as taxes nor as dividends to shareholders.

<em>The third portion </em>is used to pay out dividends to shareholders or corporate owners.

Each portion of the profits may change with the ebb and flow of economic conditions and tax laws.

Wittaler [7]3 years ago
3 0

Answer:

Profits of domestic financial corporations increased.

Explanation:

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