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Question
______ holders get dividend from residual profits.
Options
Equity share
Preference share
Debenture
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Solution
Equity share holders get dividend from residual profits.
Explanation:
Equity shareholders are the owners of a company and receive dividends from the profits left after all expenses and obligations are paid. These remaining profits are called residual profits, and equity shareholders have a claim on them.
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RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
Dividend is paid to ___________.
Final Dividend is declared by ______.
Select the correct answer from the options given below and rewrite the statement.
Dividend should be paid within ________________ days of its declaration
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_________ warrant is a cheque containing dividend amount sent by company to the shareholders.
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___________ is not linked to profits of the company
Match the pairs.
| Group ‘A’ | Group ‘B’ |
| a) Dividend | 1) Equity Shareholders |
| b) Interest | 2) Appropriation of profit. |
| c) Interim Dividend | 3) Recommendation of Secretary. |
| d) Final Dividend | 4) Registrar of company. |
| e) Fluctuating Rate of Dividend | 5) Obligatory to pay |
| 6) Decided and Declared by the Board of Directors. | |
| 7) Decided by Board; declared by Members. | |
| 8) Decided by President of India. | |
| 9) Company not allowed to pay. | |
| 10) Declared by Govt. of India |
Write a word or a term or a phrase which can substitute the following statement.
The return on investment paid to the shareholders 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.
Write a word or a term or a phrase which can substitute the following statement.
The shareholders who get dividend at a fluctuating rate.
State whether the following statement is true or false.
Dividend is decided by the Board.
State whether the following statement is true or false.
Dividend is decided by the shareholders.
Answer in one sentence.
What is final Dividend?
Select the suitable option for the following.
Dividendum ____________.
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.
- Is Board right in recommending a dividend of Rs. 5/- per share out of free reserves?
- Can Board declare the dividend though it is not approved by AGM?
- Can the Board give dividends in the form of gifts?
