Q.Correct the underlined word and rewrite the following sentence.
Dividend
is payable every year, irrespective of the profits made by the company.

The underlined word is wrong. The correct word is Interest — interest is payable irrespective of profits, while dividend is paid only out of profits.

Interest is the return paid to creditors (debentureholders, depositors, lenders). It is a charge against profit and a legal obligation; the company must pay it at the fixed rate every year whether or not it earns a profit.

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The odd one out is Interest. Final dividend and interim dividend are both types of dividend paid to shareholders, whereas interest is paid to creditors and debenture-holders.

• Final dividend is declared at the annual general meeting out of the year's profit.
• Interim dividend is declared by the Board between two annual general meetings. …