Distinguish between dividends and profits.

Dividends refer to the part of the company’s profit that a firm pays periodically to shareholders as a reward from capital invested.

Profits refer to the difference between total revenue and total cost of a business entity,

Or

Profit refers to that amount which the company earns after paying all operating as well as non-operating expenses  from the sales done by the company during the year.

or

Profit refers to the payment to entrepreneur for his role in production process.