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The .......... is received on profit of the company as well as the number of shares a person possesses.
Question



The .......... is received on profit of the company as well as the number of shares a person possesses.

A.

Salary

B.

Dividend

C.

Interest

D.

Pension

Correct option is B


A dividend is a payment made by a corporation to its shareholders, usually as a distribution of profits. The amount of dividend a shareholder receives is typically proportional to the number of shares they own in the company. Dividends can be paid in cash or in additional shares of stock and are an important consideration for investors seeking regular income from their investments.
Information Booster: Dividends are a way for companies to share their profits with shareholders. Not all companies pay dividends, especially newer or growth-oriented companies that prefer to reinvest their profits back into the business. The dividend amount and frequency depend on the company's profitability and dividend policy. Dividends are commonly issued by publicly traded companies and can be an attractive feature for investors looking for stable returns.
Additional Knowledge:
· Salary (Option a) refers to regular compensation for employment services and is not linked to company profits or share ownership.
· Interest (Option c) is the return on investment for lending money or depositing funds in a bank or financial institution. It is different from dividends, which are tied to company profits.
· Pension (Option d) is a retirement benefit provided by an employer or government, usually based on an individual’s service years or salary. It is unrelated to company profits or share ownership.

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