Question

A sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves) is called __________.

• A. profits
• B. taxes
• C. dividends
• D. none of the above

Answer 1

The correct option is C dividends

A sum of money paid regularly (typically annually) by a company to its shareholders out of its profits (or reserves) is called a dividend

A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property.