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Question
Explain the following term/concept.
Final Dividend
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Solution
Final Dividend is declared and paid after the close of the financial year. It is decided and recommended by the Board of Directors. It is declared by the shareholders in the AGM. It’s declaration does not need authorization by the Articles of Association. It is declared from different sources like; current year’s profits, free reserves, capital profits, Money provided by Govt. for dividend, etc.
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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 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
Select the correct answer from the options given below and rewrite the statement.
__________ holders get dividend from residual profits.
Select the correct answer from the options given below and rewrite the statement.
_________ warrant is a cheque containing dividend amount sent by company to the shareholders.
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. |
State whether the following statement is true or false.
Dividend is decided by the shareholders.
Complete the sentence.
Word dividend is derived from Latin term ______.
Answer in one sentence.
What is Dividend?
Select the correct option from the bracket.
| Group ‘A’ | Group ‘B’ |
| a) Dividendum | 1) ____________ |
| b) Interest | 2) ____________ |
| c) ____________ | 3) Final Dividend |
| d) ____________ | 4) Interim Dividend |
| e) Govt. Fund | 5) ____________ |
(Creditors, IEPF, Latin term, At Board Meeting, At AGM)
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)
Correct the underlined word and rewrite the following sentence.
Special Resolution must be passed to declare Final Dividend
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?
Discuss any four features of dividend.
Answer the following question.
Define Dividend and explain its features.
Give one word or phrase for the following sentence:
Latin word for "Dividend".
