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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.
_________ is profit shared by company with a shareholder.
Dividend cannot be declared out of ______________.
Dividend is recommended by ______________.
Select the correct answer from the options given below and rewrite the statement.
Dividend amount should be transferred in a separate Bank Account within ____________ days of its declaration
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.
State whether the following statement is true or false.
Dividend is decided by the Board.
State whether the following statement is true or false.
Dividend is decided by the shareholders.
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
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?
Answer in brief.
State any four points to be kept in mind by a Listed Company with respect to Dividend.
Give one word or phrase for the following sentence:
Latin word for "Dividend".
