g The long-run effect of an increase in household consumption is to raise a. both real output and the price level. b. real output and lower the price level. c. real output and leave the price level unchanged. d. the price level and leave real output unchanged.

Answers

Answer 1

Answer:

D). The price level and leave real output unchanged.

Explanation:

The long-run impact of an increase in household consumption is to elevate 'the price-level and leave real output unchanged.' The increased consumption would lead to a rise in demand which will correspond to an increase in out and decrease in unemployment.

As per the long-run self-adjustment mechanism, this shock in the economy will lead to inflation while the increase in Aggregate demand would correspond to an increase in prices and GDP. The inflation would increase the labor charges and therefore, the firms would produce less and it keeps falling until the full employment output is achieved. Thus, the long-run effect would be that GDP returns to its previous state(unchanged) while the prices are still higher. Hence, option D is the correct answer.


Related Questions

Since 1970, the highest monthly unemployment rate in the United States was – ; this happened in – . Following the recession of 1991–1992, GDP growth was generally strong, at one point exceeding 4% for four consecutive – .

Answers

Answer:

Since 1985, the highest monthly unemployment rate in the United States was 10% ; this happened in 2009 . Following the recession of 1991-1992, GDP growth was generally strong, at one point exceeding 4% for four. 21.

Since 1970, the highest monthly unemployment rate in the United States was 10.8%; this happened in 1982. Following the recession of 1991–1992, GDP growth was generally strong, at one point exceeding 4% for four consecutive Quarters.

What is GDP?

Gross domestic product (GDP) is a financial measure that shows the market value of all  final goods and services produced and sold (not resold) during a certain period by country. Due to its complexity and subjectivity, this metric is often revised before being considered a reliable indicator. However, GDP (nominal) per capita does not reflect differences in the cost of living and the inflation rate of countries. Therefore, the use of  purchasing power parity (PPP) may be more useful when comparing countries' living standards, while nominal GDP is more useful when comparing countries' economies in international markets. Total GDP can also be divided into the share of each industry or economic sector. The ratio of GDP to the total population of the region is GDP per capita

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list of purpose & uses of assets​

Answers

Answer:

Explanation:

Assets may be used to store wealth, create income, and reduce future expenses.

Assets are reported on a company's balance sheet and are bought or created to increase a firm's value or benefit the firm's operations. An asset can be thought of as something that, in the future, can generate cash flow, reduce expenses, or improve sales, regardless of whether it's manufacturing equipment or a patent.

Hope this helped!!

Todd knows that he wants to work in hospitality and tourism, but he isn’t sure that he wants to attend college. Compare and contrast the education or training and certifications needed for several different careers in the hospitality and tourism industry that could help Todd decide what his next steps are.

Answers

Most people in Hospitality and Tourism careers get success with secondary education only as they receive on-job training to learn what they need to know. Therefore, Todd shall have to attend college.

What is a Hospitality and Tourism career?

Hospitality and Tourism career jobs involve providing planning, management, food, recreation, travel, and similar services. These jobs provide higher monetary perks.

No minimum education is required to get a job in a hospitality and tourism career. This industry values experience more than education.

People are more likely to get success in hospitality and tourism as they learn and update themselves while doing the job. On-job training is an essential advantage of these careers.

Therefore, Todd should take the above-mentioned steps to work in hospitality and tourism. Hence, Todd shall have to attend college.

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cite three real life situations where quadratic equations are illustrated. Formulate quadratic equations out of these situations then describe each.​

Answers

Answer:

I want to know the sides of a pizza if the width is 9 inches larger than the height and the area is 250 squared inches.

My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.

My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.

Explanation:

To solve this you just have to think on the unknown value and represent it as "X" in the first problem we do not know the length or width but we have a values given between them, so if "x" is the height then the width becomes "x+9" so those two values multiplied become the area.

\(x(x+9)=250\\x^{2} +9x=250\\x^{2} +9x-250=0\\\)

With this you just keep solving the others.

My brother wants to know how long his bed is if it has an area of 2m and the width is .5m larger than the height.

2m as an area and the height is "x"

\(x(x+-5)=2\\x^{2} +.5x=2\\x^{2} +.5x-2=0\\\)

My father wants to know whats the size of a football field if the area is 57,600 square feet given that the length is 200 ft larger than the width.

57,600 is the area and width will be "x"

\(x(x+200)=57,600\\x^{2} +200x=57,600\\x^{2} +200x-57,600=0\\\)

Heights of adult women are distributed normally with a mean of 162 centimeters and a standard deviation of 7 centimeters.

The percentage of heights less than 145 centimeters

The percentage of heights between 16t centimeters and 180 centimeters

Answers

Answer:

a) 0.75%

b) 60.9%

Explanation:

The heights of adult women are distributed normally with a mean(μ) = 162 centimetres and a standard deviation (σ) = 7 centimetres.

z score is a measure of the distance a raw score is from the mean in terms of standard deviation units. The z score is given by the equation:

\(z=\frac{x-\mu}{\sigma} \\\).

a) The percentage of heights less than 145 centimetres. For x = 145 centimetres, the z score is:

\(z=\frac{x-\mu}{\sigma} =\frac{145-162}{7}=-2.43\)

P(x < 145) = P(z < -2.43) = 0.0075

The percentage of heights less than 145 centimetres is 0.75%

b) The percentage of heights between 165 centimetres and 180 centimetres

For x = 165 centimetres, the z score is:

\(z=\frac{x-\mu}{\sigma} =\frac{160-162}{7}=-0.29\)

For x = 180 centimetres, the z score is:

\(z=\frac{x-\mu}{\sigma} =\frac{180-162}{7}=2.57\)

P(160 < x < 180) = P(-0.29 < z < 2.57) = P(z < 2.57) - P(z < -0.29) = 0.9949 - 0.3859 = 0.609

The percentage of heights between 160 centimetres and 180 centimetres is 60.9%

Write 5 2 3 as an improper fraction.

Answers

Answer: 17/3

EXPLANATION: The mixed number 5 2/3 is the same as the improper fraction 17/3.

5.8 Kate's base pay rate is R12.50 per hour, with overtime paid at time-and-a-half. Find her gross pay if she worked 45.5 hours Monday through Saturday. (Round your answer to the nearest cent) a. R603.13 b. R568.75 c. R613.03 d. R630.13​

Answers

Kate's gross pay for working 45.5 hours Monday through Saturday is A. R 603.13.

How to find the gross pay ?

First, find the regular pay to Kate assuming she worked 40 hours in the week :

Regular pay: 40 hours * R 12 . 50/ hour

= R500

The overtime pay is calculated for the hours worked in excess of 40 hours. In this case, Kate worked 5.5 hours overtime.

Then the overtime for Saturday would be:

= 5. 5 * R12.50/hour * 1.5

= R 103. 13

The total gross pay is therefore :

Total gross pay: R500 + R103.13

= R603.13

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Centrum Services purchased $4,400 worth of equipment. The equipment has an estimated useful life of seven years and a salvage value of $200. Using the straight-line method, the depreciation for the first month is:

Answers

Using the straight-line method, the depreciation for the first month is: $50

Using this formula

Depreciation=(Cost -Salvage value) /Useful life

Where:

Cost=$4,400

Salvage value=$200

Useful life=7 years

Let plug in the formula

Depreciation=[($4,400-$200)/7]×1/12

Depreciation=($4,200/7)×1/12

Depreciation=$600×1/12

Depreciation=$50

Inconclusion Using the straight-line method, the depreciation for the first month is: $50

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Perdon Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As part of its annual budgeting
process, Perdon is analyzing the profitability of its two products. Part of this analysis involves estimating the amount of overhead to be
allocated to each product line. The information shown below relates to overhead.
Mobile Safes Walk-in Safes
200
50
300
200
Units planned for production
Material moves per product line
Purchase orders per product line
Direct labor hours per product line
450
350
800
1,700
(a)
* Your answer is incorrect.
The total estimated manufacturing overhead was $280,000. Under traditional costing (which assigns overhead on the basis of
direct labor hours), what amount of manufacturing overhead costs are assigned to: (Round answers to 2 decimal places, eg. 12.25.)
(1)
One mobile safe
$
350
per unit
(2)
One walk-in safe
$
1647
per unit

Perdon Corporation manufactures safes-large mobile safes, and large walk-in stationary bank safes. As

Answers

Under the traditional costing method (which assigns overhead on the basis of direct labor hours), the amount of manufacturing overhead costs assigned to the following by Perdon Corporation are:

1) One mobile safe    $448  per unit

2) One walk-in safe   $3,808 per unit

What is a predetermined overhead rate?

A predetermined overhead rate is used by the traditional costing method, unlike the Activity-based costing system (ABC), which uses activity drivers and cost pools.

The traditional costing method assigns overhead costs based on a companywide cost driver, for example, direct labor hours.

Data and Calculations:

Total overhead = $280,000

                                                          Mobile Safes     Walk-in Safes   Total

Units planned for production                   200                     50             250

Material moves per product line              300                    200           500

Purchase orders per product line            450                    350           800

Direct labor hours per product line         800                 1,700         2,500

Predetermined overhead rate per direct labor hour = $112 ($280,000/2,500).

Total overhead costs assigned to        $89,600         $190,400

                                                          ($112 x 800)    ($112 x 1,700)

Overhead per unit                                     $448     $3,808

                                                    ($89,600/200)    ($190,400/50)

Thus, under the traditional costing method, the amount of manufacturing overhead costs assigned are $448  per unit of Mobile Safe and $3,808 per unit of Mobile Safe.

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Which of the following will be needed to adapt to the changing landscape of business in the United States? Check all that apply.
Identification of specific geographic population centers
Improved intercultural communication skills
Growing minority population

Answers

The following will be needed to adapt to the changing landscape of business in the United States;

Identification of specific geographic population centers

Improved intercultural communication skills

Growing minority population

Hence, all the above are applied.

What is changing landscape of business?

A Business Landscape is a related representation of the most important features that make up a business and work together to achieve something of value. There are no restrictions on what can be defined in a landscape. Hence, an overturn or negative or positive development on those features that inform a business is said to be the changing landscape of business.

Therefore, the correct answer is as given above

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Guys.. Pls... Just try to help me out.
1. If you were preparing a marketing plan for this hotel, how would you describe the
company, its positioning strategy, and its value proposition?

2. What do you want to know about the market- demographics and psychographics?

3. Describe each of the 4P’s as they relate to this hotel.

(Product, Place, Price, Promotion)

4. Without doing further research, who do you think is the target market?

5. Does the hotel have a brand image? If so, explain.

Guys.. Pls... Just try to help me out. 1. If you were preparing a marketing plan for this hotel, how

Answers

1. The hotel is a luxury resort with a unique positioning strategy that caters to affluent travelers seeking exclusivity and relaxation. Its value proposition is centered around creating unforgettable memories for guests.

2. Gathering demographic and psychographic data can help identify the hotel's target audience and their emotional and psychological needs.

How would you describe the company, its positioning strategy?

The hotel is a luxury resort situated on a beautiful beach with breathtaking views. It caters to affluent travelers who value exclusivity, privacy, and relaxation. The hotel's positioning strategy is to offer an unparalleled experience by providing guests with top-notch amenities and services that meet and exceed their expectations.

The hotel's value proposition is centered around the idea of creating unforgettable memories for guests that they will cherish for a lifetime. By offering an exclusive, luxurious experience, the hotel seeks to differentiate itself from its competitors and attract high-end customers who are willing to pay a premium for superior service.

What do you want to know about the market- demographics and psychographics?

To better understand the hotel's market, it would be helpful to gather information on the demographics and psychographics of its target audience. Demographic information such as age, income, education, and occupation would be useful in determining the hotel's target customer profile. Psychographic data, such as values, lifestyle, interests, and personality traits, can help identify the emotional and psychological needs of the target market.

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Personal Impact Improvement Plan. Think about the tips for how to live an environmentally friendly life and set goals for your own improvement. Be specific and realistic for your life.

Answers

A Personal Impact Improvement Plan is a means of making small lifestyle changes to reduce one's impact on the environment. It is a series of simple lifestyle changes that can make a huge difference. An environmentally friendly lifestyle is beneficial for the environment, our health, and the economy.

Following are some tips for living an environmentally friendly life: Reducing water usage: Water is an essential natural resource. Conserving water saves money and energy while protecting the environment. This can be achieved by reducing shower times, using a low-flow showerhead, and fixing leaky taps. Reducing energy usage: The use of energy affects the environment, both locally and globally.

By conserving energy, we can save on our energy bills and reduce pollution. This can be achieved by using energy-efficient lighting, unplugging electronics when not in use, and reducing heating and cooling requirements.

Reducing plastic usage: Plastic waste is a significant problem for the environment. It takes a long time to decompose, and it is not biodegradable. This can be achieved by using reusable bags, bottles, and straws.

Reducing carbon emissions: Carbon dioxide is a greenhouse gas that contributes to climate change. This can be achieved by walking, cycling, or taking public transport instead of driving and reducing air travel.

Setting goals for your own improvement is essential. Specific, realistic, and achievable goals can be set to make lifestyle changes more manageable.

The goals should be tailored to the individual and their circumstances. For example, a person can aim to reduce their energy consumption by 10% by using energy-efficient lighting and unplugging electronics when not in use.

Another person can aim to reduce their water usage by fixing leaky taps and reducing shower times. It is important to remember that small changes can make a big difference, and everyone can do their part to help the environment.

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Which is not something the government must use to enforce consumer-protection legislation?

production oversight


censorship


product safety testing


hire inspectors

Answers

Answer:

censorship

Explanation:

everything else on the list keeps things safe, production oversight helps quality control and sanitary conditions, safety testing helps ensure safety, and inspectors also help do both. censorship doesn't do anything to help these.

Censorship is not something the government must use to enforce consumer-protection legislation. Thus the correct option is B.

What is government?

A government is referred to as an administrative body that controls the functioning of any country by implementing rules and regulations and introducing a better standard of living.

The act or concept of eliminating words that are explicit or graphic imagery from a public audience is known as censorship. Additionally, self-censorship exists, which is the practice of holding back on saying particular things.

For the purpose of fighting to spy, all this is utilized. Governments withhold information from their people when they practice censorship of politics. It is common practice to do this in order to exercise control over the public and suppress free speech that could spark an uprising.

Therefore, option B is appropriate.

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Jeff needs to copy a phrase from one paragraph to the second paragraph

Answers

need more information!

A preparation outline is used to help organize the speaker's thoughts, ideas, and information. What is the purpose of a presentation outline? Question 14 options:

a. A presentation outline is used to provide copies of the speech to each member of the audience.

b. A presentation outline is used to present only the key points of a speech.



c. A presentation outline helps the speaker remember what to say during his or her speech.



d. A presentation outline is used to explore different patterns of organization.

Answers

The purpose of a presentation outline is to help the speaker organize and structure their speech in a clear and logical manner.The outline can also be used to help the speaker remember what they want to say during the presentation, allowing them to focus on delivering the content effectively without worrying about forgetting important details. The correct option is c.

The outline provides a framework for the content that will be presented, ensuring that all important points are covered and that the content is loaded with relevant information.  Additionally, a presentation outline can be helpful for the audience as well, providing them with a clear roadmap of what to expect during the presentation and allowing them to follow along with ease.

While it may not be necessary to provide copies of the outline to each member of the audience, having a clear and organized presentation can make a big difference in how well the content is received and understood. Overall, a well-prepared presentation outline is an important tool for any speaker looking to deliver a successful and engaging presentation. The correct option is c.

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29.
An operation was closed because of an extended electricity failure. When can it
begin service again?

Answers

It can begin service again approval is obtained from the regulatory authority.

When can service start

The duration for an organization to recommence its services after enduring a foremost electricity malfunction relies on several elements, such as the character of the operation, the magnitude of destruction caused by the power cut-off, as well as the accessibility of supplies requisite to renew operations.

For instance, if the establishment is a minor retail outlet, it can possibly resume working once the power source is restituted and various necessary safeguards have been established. Conversely, if the business is a major production concern or informatics server, it could take longer to reinstate tasks due to the meticulously intricate facilities and networks entailed.

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Type the correct answer in the box. Spell all words correctly.
What are net sales?
pls help

Answers

The proportion of revanues that remain deducting the allowance of damaged goods

Websites are hosted on a server and each of these servers has its own unique IP address. What does the 'IP' stand for?

A
Internet Position
B
Internet Placement
C
Internet Privatisation
D
Internet Protocol

Answers

'IP' stand for Internet Protocol.

Internet Position : This is not a general concept. However, it is mainly used by his ISP service. The towers seen in our city work with Internet locations. Mobile phones get better network speeds depending on their internet location.

Internet Placement: This means turning on airplane mode will change your mobile IP. This is why it is published online. This process runs when you turn off your phone.

Internet Privatisation : Simply put, privatization of the Internet starts working when you change your DNS servers. When we are private on the internet with a VPN, we are the privatizer of the internet.

Internet Protocol: This is one of the most important things for every website and Internet user. Anyone who connects to the internet on their device has an IP address. Simply put, an internet-connected device provided a specific IP. The website also has its own IP. Because of this, you can access the Internet.

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How do you find a monthly payment on auto loans?​

Answers

Answer:

Explanation:

m

To find the monthly payment on an auto loan, you will need to know the principal amount of the loan, the interest rate, and the length of the loan. Once you have this information, you can use a loan calculator or a mathematical formula to calculate the monthly payment.

The formula for calculating the monthly payment on an auto loan is:

M = P [ i(1 + i)^n ] / [ (1 + i)^n – 1]

Where:
M = monthly payment
P = principal amount of the loan
i = interest rate (per month)
n = number of months of the loan

Alternatively, you can use an online calculator to determine the monthly payment. Many banks and financial institutions offer online loan calculators that allow you to input the loan amount, interest rate, and length of the loan to determine the monthly payment.

It is important to note that the interest rate on an auto loan can vary depending on a number of factors, including the borrower's credit score, the length of the loan, and the type of vehicle being financed. It is also important to shop around to find the best interest rate and loan terms before committing to an auto loan.

expalin how foreign employment contributes to spurring nation economy​

Answers

1) Country can get lots of foreign currency as the remittance which can be used to establish industries in the country. Such industries provide job opportunities in the country. 2) People who go overseas to work can learn different skills and technologies which can be beneficial for the development of our own country.

what organization or program interests you the most?

Answers

Answer:

I love law :) what about you

I love math what do you like

Ps; sorry but may you please mark brainly im trying to level up

Suppose that business travelers and vacationers have the following demand for airline tickets from New York to Boston:

Price Quantity Demanded by Business Travelers Quantity Demanded by Vacationers (Dollars)
150 2,100 (Tickets) 1,000 (Tickets)
200 2,000 800
250 1,900 600
300 1,800 400

Required:
a. As the price of tickets rises from $200 to $250, what is the price elasticity of demand for (i) business travelers and (ii)vacationers? (Use the midpoint method in your calculations.)
b. Why might vacationers have a different elasticity from business travelers?

Answers

Answer and Explanation:

a. The computation of the price elasticity of demand is

i. For business travelers

= {(1900  - 2000) ÷ [(1900 + 2000) ÷2]}  ÷  {(250 - 200) ÷ [(200 + 250) ÷ 2]}

= 0.23

ii. For Vacationers

=  {(800 - 600) ÷ [(800 + 600) ÷ 2]} ÷ {(250 - 200) ÷ [(200 + 250)  ÷ 2]}

= 1.29

b. Since the price would increase from $200 to $250 so the price elastiicy of business travelers & vactationers is 0.23 and 1.29 respectively. So the demand for for airline tickets would be more elastic for vacationers as the business travelers would be less senstitive for price change  

Which of the following are not reasons entrepreneurs improve the economy?


self-confidence = stimulated economy

new businesses = no new employees

no taxes

new technology

Answers

Answer:

Explanation:

b and c

No taxes not reasons entrepreneurs improve the economy

The economy benefits from entrepreneurship for a variety of reasons, including the creation of jobs and the advancement of social change.

Are there explanations for why entrepreneurs help the economy?

Entrepreneurs are crucial to market economies because they may drive the nation's economic expansion. They encourage new employment by developing new goods and services, which eventually accelerates economic growth.

They also overwhelmingly suggest that tax increases can enhance government revenue, but frequently at the expense of economic growth and taxpayer mobility. On the other hand, tax reductions typically result in temporary drops in revenue while fostering long-term economic growth.

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2. Using Kelley's typology, how would you describe the follower styles for Schultz and Curley? What about McQueary?

Answers

Kelley's typology classifies followers into five styles: conformist, pragmatic survivor, passive, alienated, and exemplary.

Why is this so?

Based on his actions and behavior in the workplace as a follower, Schultz would fit the category of exemplary follower style. His unwavering dedication and commitment to Starbucks as an employee was evident in his constant search for ways to enhance the company's products and operations.

Conversely, Curley exhibited a conformist follower style by adhering to traditional methods of operation and following expectations set by superiors.

Although McQueary's follower style cannot be firmly placed into a single category due to his inconsistent behavior and actions, it is noteworthy that he demonstrated commendable behavior by reporting the misconduct he observed.

However, at times, his passive attitude was evident through his failure to pursue further action or follow up on his initial report.

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The study of economics is nothing but the study of a tree and a forest. Discourse with respect to branches of economics

Answers

The study of economics involves the examination of individual components represented by branches and the analysis of the broader system represented by the forest.

How does the study of economics relate to a tree and a forest?

Just as a tree consists of various branches that connect and support each other, the study of economics comprises different branches that explore specific aspects of the economy. These branches including microeconomics, macroeconomics and international economics focus on understanding and analyzing elements of economic behavior and systems.

The interplay between the various branches of economics contributes to comprehensive understanding of how individual economic decisions and activities collectively shape the broader economic system. By studying both the branches and the forest, economists can gain insights into the intricate relationships.

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On January 1,2017 mr kebede borrowed 10000 br from awash international bank s.c at 12% interest rate compound semi annually for 3 years? A.calculate the amount of interest payment ?
B. Pass the necessary journal entry to record the borrowing &payment ?

Answers

$600 is the amount of the interest. The journal entry will include cash and interest account.

The information provided:

Amount that is borrowed = $10000

The interest rate = 12%

The interest is calculated on a semi-annual basis for 3 years.

The amount of interest payment is

= 10000 × 19/100 × 3/6

= 600

The entry's creation date. The time frame within which the recording must be made. The person's name who made the entry. The journal entry will include borrowing & payment accounts of the same.

Cash a/c  (Dr.)  600

To interest a/c (Cr.)    600

(The interest will be calculated and charged by the bank)

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define ethics and moral conduct​

Answers

The study of right and bad behaviour is known as ethics. The rules governance the same are the subject of morals.

Brief definition of ethics and conduct.

The term "ethical conduct" refers to acting morally. The phrase "ethical conduct" relates to your interactions with others while respecting the principles of honesty, integrity, fairness, and good faith. This includes SIC members, staff members, subcontractors, clients, members of the public, and others.

What distinguishes morality and ethics from one another?

Ethics is concerned with the process of making moral judgements, which occasionally requires weighing the pros and cons or competing interests and values. Morality is a set of rules for conduct that is typically founded on religious principles, which frequently guide our moral judgements. Morality is a personal thing.

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Sylvester Motors Inc. has the following balances at the end of the accounting period:

Items
Amount

$

Plant and Machinery 80,000
Notes Payable 5,000
short-term loan payable in 7 months 40,000
Taxes Payable 4,000
Mortgage 30,000
What is the total of the current liabilities of Sylvester Motors?

A.
$45,000
B.
$85,000
C.
$49,000
D.
$34,000

Answers

Answer:

C $49,000

Explanation:

none

he financial statements of Denison Furniture Company include the following items: ​ 2019 2018 ​ ​ ​ Cash $53,500 $53,000 Short-term Investments 29,000 15,000 Net Accounts Receivable 92,000 105,000 Merchandise Inventory 162,000 142,000 Total Assets 532,000 551,000 Total Current Liabilities 235,000 215,000 Long-term Note Payable 62,000 60,000 ​ ​ ​ What is the 2019 cash ratio? (Round your answer to two decimal places)

Answers

Answer:

The cash ratio is calculated by dividing cash and short-term investments by current liabilities.

Cash ratio for 2019 = (53,500 + 29,000) / 235,000 = 0.39

Rounding to two decimal places, the 2019 cash ratio is 0.39.

Explanation:

Which is NOT an example of an expense a) advertising b)insurance c)dividends d)depreciation

Answers

Answer:

c. dividends

Explanation:

not payable... so

Dividends are not an example of an expense.

What are dividends?

A dividend or dividends can be define as a distribution of profits by a corporation to its shareholders. When a corporation earns a profit or surplus, it is able to pay a portion of the profit as a dividend to shareholders. Any amount not distributed is taken to be re-invested in the business which is called retained earnings.

The current year profit as well as the retained earnings of previous years are available for distribution and a corporation is usually prohibited from paying a dividend out of its capital. Distribution to shareholders may be in cash which is usually a deposit into a bank account or, if the corporation has a dividend reinvestment plan, the amount can be paid by the issue of further shares or by share repurchase. In some cases, the distribution may be of assets.

The dividend received by a shareholder is income of the shareholder and may be subject to income tax. The tax treatment of this income varies considerably between jurisdictions.

The corporation does not receive a tax deduction for the dividends it pays.

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