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प्रश्न
State whether the following is True or False:
A dividend policy of the company determines the extent to which profits can be retained in the business.
चूक किंवा बरोबर
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उत्तर
This statement is true.
Explanation:
A company’s dividend policy decides how much of the profit will be distributed to shareholders as dividends and how much will be retained in the business for future growth. Therefore, it directly determines the extent of profit retention.
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