What do limited companies distribute to their owners as a form of profit?

Limited companies distribute dividends to their owners, typically referred to as shareholders, as a form of profit. Dividends represent a portion of the company's earnings that is distributed to shareholders based on the number of shares they hold. This distribution is significant because it allows shareholders to benefit directly from the company's profitability, aligning their interests with the company's financial success.

Wages, bonuses, and commission are forms of remuneration given to employees and do not pertain to the distribution of profits among owners of a limited company. Wages are regular payments made to employees for their work, bonuses may be given as results of performance-based incentives, while commission is often a percentage of sales or profits given to employees involved in sales. Thus, these options relate to compensation for labor rather than profit sharing among the owners of the company. Dividends specifically cater to reflecting the company's profitability back to its shareholders, underscoring their investment and financial stake in the business.