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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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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 ______________.
______ 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.
Select the correct answer from the options given below and rewrite the statement.
___________ is not linked to profits of the company
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 |
Write a word or a term or a phrase which can substitute the following statement.
The shareholders who get dividend at a fluctuating rate.
State whether the following statement is true or false.
Dividend is decided by the Board.
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)
Correct the underlined word and rewrite the following sentence.
Special Resolution must be passed to declare 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.
