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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 ______.
Dividend cannot be declared out of ______________.
Dividend is recommended by ______________.
Select the correct answer from the options given below and rewrite the statement.
Dividend should be paid within ________________ days of its declaration
Match the pairs.
| Group ‘A’ | Group ‘B’ |
| a) Dividend | 1) Must inform stock exchange about Dividend declaration |
| b) Interest | 2) Creditors |
| c) IEPF | 3) Registered Shareholders. |
| d) Unpaid Dividend Account | 4) Balance of unpaid Dividend Transferred here. |
| e) Listed Company | 5) Unregistered company. |
| 6) Non-listed company. | |
| 7) Unpaid/Unclaimed Dividend. | |
| 8) Balance of unpaid Bonus transferred here. | |
| 9) Must inform Government about Dividend declaration. | |
| 10) General Public. |
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.
Answer in one sentence.
What is 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)
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?
Give one word or phrase for the following sentence:
Latin word for "Dividend".
