Moderate

Portion of a company's profit paid to common and preferred shareholders is called ?

Correct answer: C. Dividend

  • A. Gross Profit
  • B. Profit share
  • C. Dividend
  • D. Right share

Explanation

A dividend is the portion of distributable profit paid to shareholders according to their shareholding. Gross profit is an earnings measure, while a right share is a new share offered to existing shareholders.

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About Microeconomics

Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.

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