Question

Difference between divisible profit and non divisible profit

Answer 1

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Difference between profit and divisible profit must be clearly understood. All the profits are not divisible. Only thoseprofits, which can be legally distributed amongst the shareholders are divisible profits.

Answer 2

It should be noted that not all profits can be divided among its shareholders. Non divisible profit is that type of profit that can not be divided to its shareholders to to; the business may be sole proprietorship where the business is owned by one person and he fully enjoys the profit, divisible profits are those that are shared equitably among the shareholders depending on the initial contribution of each shareholder.

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