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    Question

    A sum of money paid regularly (typically annually) by a company to its shareholders out of its profits is called as?

    A Incentive Correct Answer Incorrect Answer
    B Bonus Correct Answer Incorrect Answer
    C Share Correct Answer Incorrect Answer
    D Interest Correct Answer Incorrect Answer
    E Dividend Correct Answer Incorrect Answer

    Solution

    Dividend refers to a reward, cash or otherwise, that a company gives to its shareholders. Dividends can be issued in various forms, such as cash payment, stocks or any other form. A company's dividend is decided by its board of directors and it requires the shareholders' approval.

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