The profits of the company are partly divided among the share holders and profit received by each share holder is called ________.
A
rate
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B
interest
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C
dividend
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D
profit
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Solution
The correct option is B dividend A dividend is a distribution of a portion of a company's earnings, decided by the board of directors, paid to a class of its shareholders. Dividends can be issued as cash payments, as shares of stock, or other property
So, we can say that the dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits.