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Explain the following term/concept. Dividend

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प्रश्न

Explain the following term/concept.

Dividend

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उत्तर

The term dividend is derived from the Latin word ‘Dividendum’ which means ‘that which is to be divided’. It is that part of the profits of a company which is distributed amongst its shareholders. A dividend is ‘a share in distributable profits of the company to which the shareholder is entitled when it is formally declared by the company.’

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Dividend
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अध्याय 10: Dividend and Interest - Explain the following terms/concepts

संबंधित प्रश्न

Select the correct answer from the options given below and rewrite the statement.
Dividend is paid to ___________.


Select the correct answer from the options given below and rewrite the statement.
_________ is profit shared by company with a shareholder.


Dividend is recommended by ______________.


Select the correct answer from the options given below and rewrite the statement.
Dividend amount should be transferred in a separate Bank Account within ____________ days of its declaration


______ holders get dividend from residual profits.


Select the correct answer from the options given below and rewrite the statement.
_________ warrant is a cheque containing dividend amount sent by company to the shareholders.


Select the correct answer from the options given below and rewrite the statement.
___________ is not linked to profits of the company


Write a word or a term or a phrase which can substitute the following statement.

The meeting where the final dividend is declared.


Write a word or a term or a phrase which can substitute the following statement.

The shareholders who get dividend at a fixed rate.


Answer in one sentence.

What is final Dividend?


Select the suitable option for the following.

Dividendum ____________.


Correct the underlined word and rewrite the following sentence.

Special Resolution must be passed to declare Final Dividend


Explain the following term/concept.

Final Dividend


Explain the following term/concept.

Rate of Dividend.


Study the following case/situation and express your opinion :

LMN Co Limited decides to declare a dividend for the financial year 2018-19 in which it has earned profits less than their expectations.

  1. Is Board right in recommending a dividend of Rs. 5/- per share out of free reserves?
  2. Can Board declare the dividend though it is not approved by AGM?
  3. Can the Board give dividends in the form of gifts?

Answer in brief.

State any four points to be kept in mind by a Listed Company with respect to Dividend.


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