dividends
"Royalties" is the word you are looking for. Dividends can be preset portion of profits of a company, attached to certain kinds of shares (often called "preferred" or "preference"), but they are not contractual as they flow from the Letters Patent or Articles which created the company and not from a contract.
(Apex Learning) Individuals own businesses, and they compete with one another for profits.
It allow individuals to operates their businesses in ways they think will maximize their profits.
Banks use excess reserves to make loans to customers so that they can make profits on the interest.
Dividends
A dividend is a portion of the companies profits paid to it's Stockholders.
Corporations have shareholders that invest in their business and expect a portion of the business's profits in return. Dividend payments are part of the shareholders' returns for investing in a business. Corporations have a choice to either reinvest their profits in shares, or keep a portion of the profits and paying shareholders dividends.
Owners of a business generally do not get a salary, they get a portion of the profits.
A shareholder gets a portion of the companies profits when a dividend is paid.
a company owned by investors who share the profits
The portion of a corporation's profits paid to shareholders is referred to as a dividend. Dividends are typically distributed on a per-share basis and can be paid in cash or additional shares of stock. Companies often distribute dividends as a way to share their profits with investors, reflecting their financial health and commitment to returning value to shareholders.
Industrialization led to a manufacturing based econony and business owners were looking to maximize their profits