Question

Name the financial decision which relates to disposal of profits. (a) Investment decision (b) Financing decision (c) Dividend decision (d) Capital budgeting decision

Answer 1

Explanation:

c) Divident decision

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Answer 2

The financial decision which relates to disposal of profits is Dividend decision.

Explanation:

• The part of profit that is distributed to shareholders is known as a dividend. The choice at hand is how much of the company's profit (after deducting taxes) should be delivered to the shareholders and how much should be kept for internal use.
• Dividend decision is a term used to describe a financial choice on how much of a company's profit should be maintained for future needs (retained earnings) versus delivered to shareholders as a dividend.
• The portion of the profit that is distributed to shareholders is referred to as a dividend. The overall goal of maximizing shareholder value should be considered while making the dividend decision.

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