When are the profits of a corporation distributed to shareholders?

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Profits of a corporation are primarily distributed to shareholders in the form of dividends. Dividends are the portion of a corporation's earnings that is distributed directly to shareholders as a return on their investment. This distribution can occur periodically, such as quarterly or annually, and is usually based on the corporation's profitability and board decisions.

The other options do not accurately represent how profits are typically distributed. Liquidation involves winding up the company's affairs and distributing remaining assets after all obligations have been settled, which is a different scenario from regular profit distribution. Bonuses are generally rewards given to employees or management, not shareholders. Distributing profits "upon request" does not align with established corporate procedures for profit distribution, as dividends are declared and paid based on a formal decision-making process rather than individual shareholder requests.

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