Short Answer

Proportional Profit Distribution

Investor A owns 2,000 shares and Investor B owns 1,000 shares in the same corporation, which has a total of 100,000 shares issued. The corporation distributes $500,000 in profits to its shareholders. Without calculating the exact monetary payout for each, explain why Investor A will receive exactly double the payout of Investor B. Justify your answer based on the principle of proportional ownership.

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Updated 2025-09-28

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