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Banking Sample Paper SBI Clerk Grade (Main) Sample Test Paper-5

  • question_answer
    The part of a company's earnings or profit which are paid out to shareholders is known as

    A)  Capital Gains

    B)  Interest on Borrowings

    C)  Taxes

    D)  Dividends         

    E)  Penal Interest

    Correct Answer: D

    Solution :

          A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. When a corporation earns a profit or surplus, it can either re-invest it in the business (called retained earnings), or it can distribute it to shareholders. A corporation may retain a portion of its earnings and pay the remainder as a dividend.


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