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Explain the Following as Factor Affecting Dividend Decision: Legal Constraints - Business Studies

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ConceptFinancial Decisions - Financing and Dividend

Question

Explain the following as factor affecting dividend decision:

Legal constraints

Solution

Legal constraints: Companies mandatorily need to adhere to the rules and policies of the Companies Act. The dividend decisions must be taken into careful consideration of these rules and policies.

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Solution Explain the Following as Factor Affecting Dividend Decision: Legal Constraints Concept: Financial Decisions - Financing and Dividend.
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