Profit distribution

Profit distribution refers to how a company's earnings are shared among its stakeholders, such as shareholders, partners, or owners. After the company covers expenses, taxes, and reinvests in growth, the remaining profit can be distributed as dividends to shareholders, used to buy back shares, or kept within the company for future needs. The specific method depends on the company's policies and agreements. This process ensures stakeholders benefit from the company's success while maintaining resources for ongoing operations and growth.