Question

Alexandra owns stock in a corporation, and she just received 100 additional shares of stock as part of the corporation’s distribution of profits for the current quarter. What is this distribution called? A. Dividends B. Negative equity C. Quantum meruit D. Consideration

Answer 1

Answer:

The correct answer is A

Explanation:

Dividend is the amount of money or a payment which is made through the corporation or business to its shareholders, mostly as a distribution of profits. When the business or corporation have profits or the surplus, then the business is able to re- invest the profit further and then pay the proportion of the profit as the dividend to the company shareholders.

So, in this case, Alexandra who received 100 additional on the stock is the distribution of profit, which is called as dividends.