Profit distribution refers to the process of allocating a company's earnings among its stakeholders. This can include shareholders, employees, and reinvestment into the business. The method of distribution can vary, with common practices including dividends for shareholders and bonuses for employees. The decision on how to distribute profits is typically made by the company's management and board of directors. Factors influencing this decision may include the company's financial health, future investment opportunities, and the expectations of stakeholders. Effective profit distribution can enhance shareholder value and motivate employees, contributing to overall business success.