Question

What are the benefits and drawbacks of accumulating cash balances rather than paying dividends and what effects do dividend policy have on this type of decision?

Answer 1

Due to ban on plastie many shops are in need of paper bags/ covers. Can you

enquire the requirement in the nearby shops, prepare paper bags/covers and sell

to them. Maintain an account as follows:-

CREDIT (YOU EARNED) DEBIT (YOU SPENT)

Rupees Invested

(Purchase of waste paper,

glue, scissors, etc..)

Cover/Bag making charges

Selling price

Balance amount

(Your earning)