The dividend is a portion of a company's profits distributed to shareholders.

Which of the following is an example of using internal funds to finance a company's operations?

Companies are allowed to use their profits and distribute it as dividend. However, they are prohibited from distributing its capital. What is the rational behind this restriction?

Miami Ltd started trading in 2013 and made a profit for the year of $100,000. In 2014, it made a loss of $60,000. For 2014, its board of directors decided to distribute dividends of $45,000. This decision is lawful. 

What is an advantage for a company to go public?

Which of these are advantages of a private company compared to a partnership?

i. Access to a larger pool of funding.

ii. Perpetually existence

iii. Subject to more monitoring and regulations.

iv. Shareholders of a private company have limited liability.

Companies could get funding from the followings:

i. Government

ii. Other companies

iii. Banks

iv. Pension funds

v. Their retained earnings accounts

Which of the following statement is TRUE?

Match the description to the correct type of business organisation. Choose the best match.

Match each description of different business organisation. Choose the best match.