Answer :
Final answer:
Susie, who owns 80% of the company's stock, will receive $80,000 of the $100,000 profit, as profit distribution is based on the proportion of stock owned.
Explanation:
In the Big Box Corporation scenario, profit distributions to shareholders such as Susie and Sheryl are determined based on their respective percentages of company stock owned. Since Susie owns 80% of the company's stock, she will receive 80% of the profits distributed. Therefore, if the company made $100,000 profit and decides to distribute it all to the owners, Susie would receive $80,000. This is a simple application of percentages. It is important to note that the amount Susie invested to start the company does not affect the distribution of profits. The distribution is entirely based on the ownership stake that each owner holds, represented by their share of the company's stock.
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