Net income belongs to the shareholders and is split between divi True False

True! Net income is indeed the profit a company makes after all expenses are subtracted. This profit ultimately belongs to the shareholders, and they may receive a portion of it in the form of dividends. However, companies often reinvest a part of their net income back into the business for growth, which might mean not all net income is distributed as dividends. While it's great to see those dividend checks arrive, keep in mind that many companies choose to reinvest profits to foster growth! This means shareholders may benefit more in the long run through rising stock values rather than immediate payouts. Always weigh the dividend strategy with your investment goals in mind!