A dividend is a distribution by a corporation to its stockholders and can take one of three forms – cash, stock, and non-cash assets. Most dividends are cash dividends. In order to pay a cash dividend, a company must have sufficient retained earnings and enough cash to pay the dividend. If you chose incorporating, what would you have to do to organize your corporation?

Answer rating: 100% (QA)

Corporations must have a credit balance in Retained Earnings in order to declare a dividend a corpor... View the full answer