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1 September, 04:18

What happens to profits of domestic financial corporations

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Answers (2)
  1. 1 September, 07:24
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    Profits of domestic financial corporations increased.
  2. 1 September, 08:16
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    The profits of domestic financial corporations are always distributed.

    Corporate profits are the excess revenue received by corporations over their accounting cost of production.

    One portion of the profits is used to pay corporate profits taxes. These taxes are paid to the government.

    The second portion is used by the corporations to finance capital investment. This portion is also called retained earnings. These are profits not paid as taxes nor as dividends to shareholders.

    The third portion is used to pay out dividends to shareholders or corporate owners.

    Each portion of the profits may change with the ebb and flow of economic conditions and tax laws.
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