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Question
Explain the following term/concept.
Dividend
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Solution
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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RELATED QUESTIONS
Select the correct answer from the options given below and rewrite the statement.
Dividend is paid to ___________.
Final Dividend is declared by ______.
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Dividend amount should be transferred in a separate Bank Account within ____________ days of its declaration
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___________ is not linked to profits of the company
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The return on investment paid to the shareholders of the company.
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The shareholders who get dividend at a fluctuating rate.
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Dividend is decided by the shareholders.
Answer in one sentence.
What is Dividend?
Answer in one sentence.
What is final Dividend?
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Preference Shares | 1) ____________ |
| b) Equity Shares | 2) ____________ |
| c) Deposit holders | 3) ____________ |
| d) ____________ | 4) Payment of Dividend |
| e) ____________ | 5) Dividend Declared but not paid/claimed |
(Unclaimed/Unpaid Dividend, Fixed rate Dividend, Dividend at a Fluctuating Rate, Interest, Within 30 days)
Explain the following term/concept.
Final 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?
Answer in brief.
State any four points to be kept in mind by a Listed Company with respect to Dividend.
Answer the following question.
Define Dividend and explain its features.
Give one word or phrase for the following sentence:
Latin word for "Dividend".
