Final answer:
Income distributed to corporation owners in the form of profits is known as dividends. These are payments made to shareholders based on the number of shares they own.
Step-by-step explanation:
The income distributed to owners of corporations is known as dividends. A dividend is a direct payment made by a firm to its shareholders, typically from its profits. For every share a shareholder owns, they receive a portion of the profits. For example, a company that pays a dividend of 75 cents per share would lead to a shareholder owning 85 shares receiving a total of $63.75. Stable companies, like Coca-Cola and various utility companies, commonly provide dividends to their shareholders, who may hold these stocks for extended periods due to their consistent dividend payments.