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Question
Explain the following term/concept.
Profit
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Solution
Profit is the difference between revenues and the expenses for a given period. Profit making and its maximization is the prime aim of all business organisations. The shareholders invest with an aim of earning returns out of the profits of the company.
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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 |
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Special Resolution must be passed to declare Final Dividend
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