The components of profit are :

The correct answer is option (3) : Dividend + Corporate saving + Corporate profit tax

Profit is the income or reward of the entrepreneur for his contribution to manufacturing of goods & services. In other words, it is the residual income that an entrepreneur earns after paying off all other factors of production.

The profit earned is used for three purposes:

• Corporate Tax: It is the tax paid by a firm to the government for the profits earned by them in a particular period. It is also known as business tax or profit tax.
• Dividend: Dividend is the part of profit given to shareholders in their shareholding ratio. It is also known as distributed profits.
• Retained Earnings: It is that part of the profit that is kept aside as a reserve to handle the uncertain situations that may arise in a business. It is also known as reserves and surplus or undistributed profits or savings of private sector.  

Profit = Corporate Tax + Dividend + Retained Earnings (Savings)