Which term refers to distributions of corporate profits to shareholders?

• A. Copyright
• B. Dividends
• C. Royalty Fees
• D. Share of Stock

Answer: (B)

Dividends are payments made by a corporation to its shareholders from its profits. They’re typically cash (often issued quarterly) and can occasionally be in the form of additional stock. This is how owners receive a portion of the company’s profitability, reflecting the company’s payout policy and current financial health. Not all profits are distributed; some are kept as retained earnings to fund growth or other needs. Copyright refers to legal rights protecting creators’ works, royalty fees are payments for ongoing use of intellectual property, and share of stock denotes ownership in a company, not the distribution itself.