A share of profits paid to stockholders of a corporation.

• A. Royalties
• B. Bonuses
• C. Dividends
• D. Interest

Answer: (C)

Dividends are payments of a corporation's profits to its stockholders. When a company earns profits, the board may declare a dividend and distribute part of those earnings to shareholders, usually as cash per share or sometimes as additional shares. This is the return on owning stock, not wages, interest, or payments tied to licensing. The other terms refer to different kinds of payments: royalties come from licensing or resource use, bonuses are extra pay to employees, and interest is payment for borrowing money. So the distribution to owners of the company’s profits is best described as dividends.