This claim is untrue since the income that are not reinvested in the company are paid as common stock dividends to stockholders. Profit, net income, or earnings are used to pay dividends.
What function does a shareholder perform?
The corporation's owners are its shareholders. They are entitled to ownership of the company stock shares. However, the shareholder's position in the business is restricted because they are not entitled to nor required to handle the day-to-day operations of the company.
Who are the three primary players?
Stakeholder priority may often be broken down into three categories. Employees, clients, and investors are first and most crucial group, without whom the company cannot function.
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