______________ is the distribution of the profits of a company among its shareholders.

Shares
Interest
Dividend
Commission

The correct answer is C. Dividend.

A dividend is a distribution of a portion of a company’s earnings, decided by its board of directors, to a class of its shareholders. It is the portion of a company’s profit allocated to a shareholder, and is paid out of the company’s retained earnings.

Shares are units of ownership in a company. When you buy shares in a company, you become a part-owner of that company.

Interest is a fee paid by a borrower to a lender for the use of borrowed money. The interest rate is the percentage of the principal that is paid as interest each year.

Commission is a fee paid to a broker or agent for their services in making a sale or trade.

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