Question

Using the terms “dividends” and “retained earnings,” explain how publicly held corporations deal with profit.(1 point)
Responses

When a corporation earns a profit, it will frequently avoid taxes by declaring that profit as a dividend. Any remaining profit will be taxed as normal and is commonly referred to as retained earnings.
When a corporation earns a profit, it will frequently avoid taxes by declaring that profit as a dividend. Any remaining profit will be taxed as normal and is commonly referred to as retained earnings.

When a corporation earns a profit, it will frequently avoid taxes by declaring that profit as retained earnings. Any remaining profit will be taxed as normal and is commonly referred to as a dividend.
When a corporation earns a profit, it will frequently avoid taxes by declaring that profit as retained earnings. Any remaining profit will be taxed as normal and is commonly referred to as a dividend.

When a corporation earns a profit, it will sometimes distribute a portion of that profit to shareholders in the form of dividends. Any remaining profit is kept as retained earnings.
When a corporation earns a profit, it will sometimes distribute a portion of that profit to shareholders in the form of dividends. Any remaining profit is kept as retained earnings.

When a corporation earns a profit, it will sometimes distribute a portion of that profit to shareholders in the form of retained earnings. Any remaining profit is kept as dividends.

Answers

GPT-4o mini
When a corporation earns a profit, it will sometimes distribute a portion of that profit to shareholders in the form of dividends. Any remaining profit is kept as retained earnings. This approach allows the corporation to reward its shareholders while also reinvesting a portion of the profits back into the company for future growth and development.