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Mention two drawbacks of ploughing back of profits, from the shareholder’s viewpoint. - Commerce

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Mention two drawbacks of ploughing back of profits, from the shareholder’s viewpoint.

अति संक्षिप्त उत्तर
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उत्तर

  1. Reduced Dividends: Shareholders may receive lower dividends as profits are retained instead of distributed.
  2. No Control Over Usage: Shareholders cannot directly control how the retained profits are used by the management, which may lead to inefficient use of funds.
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पाठ 3: Sources of Financial for a Join stock Company - EXERCISES [पृष्ठ ७९]

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सी. बी. गुप्ता Commerce Volume 2 [English] Class 12 ISC
पाठ 3 Sources of Financial for a Join stock Company
EXERCISES | Q 37. | पृष्ठ ७९
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