The correct answer is A. Residual payment.
Profit is the residual payment to the owners of a business after all expenses have been paid. It is the difference between the revenue generated by a business and the costs incurred in generating that revenue. Profits can be used to reinvest in the business, pay dividends to shareholders, or be retained by the owners.
Option B is incorrect because profits are not pre-determined. The amount of profit a business makes depends on a number of factors, including the prices it charges for its products or services, the costs it incurs, and the amount of competition it faces.
Option C is incorrect because profits are not fixed contracts. The amount of profit a business makes can vary from year to year, depending on the factors mentioned above.
Option D is incorrect because profits are not always higher than wages. In some cases, a business may make a loss, in which case the wages of its employees will be higher than its profits.