If investors are given periodic payments based on the net profit of the company, these payments are known as ___________.

dividends

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incentive payments

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rewards

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deposits

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Solution

The correct option is B dividends
The word "Dividend" has been derived from the Latin word "Dividendum" which means a thing to be divided. It has been defined under section 2(35) of Companies Act, 2013 as including any interim dividend. It basically means the portion of the profit received by the shareholders from the company's net profit, which is legally available for distribution among the members.

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