Question

______ decision involves the decision regarding the distribution of profit or surplus of the company.

विकल्प

• Investment decisions

• Financial decisions

• Dividend Decisions

• All of the above

Answer 1

Dividend Decisions

Explanation - 

The choice entails deciding how the company's earnings or surplus will be distributed. A corporation can either distribute its profit to equity shareholders as dividends or keep it for itself. A company's dividend decision determines how much of its surplus to distribute as dividends and how much to keep as retained earnings. Its goal is to maximise shareholder wealth while keeping in mind the necessity for retained earnings for reinvestment.