Profits distributed to shareholders in the form of dividends are called?

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Multiple Choice

Profits distributed to shareholders in the form of dividends are called?

Explanation:
Dividends are payments made to shareholders from a company’s profits. When a business earns earnings, the board may decide to share a portion with owners in return for holding the shares, so investors receive a return on their investment. Dividends can be paid in cash or as additional shares. This is different from interest (earnings from lending money), royalties (payments for using someone else’s property or IP), and bonuses (extra pay to employees).

Dividends are payments made to shareholders from a company’s profits. When a business earns earnings, the board may decide to share a portion with owners in return for holding the shares, so investors receive a return on their investment. Dividends can be paid in cash or as additional shares. This is different from interest (earnings from lending money), royalties (payments for using someone else’s property or IP), and bonuses (extra pay to employees).

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