Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:

Sultan Cables Ltd. earned a net profit of ₹50 crores. Anand, the finance manager of Sultan Cables ltd, wants to decide how to apportion these profits. Which financial decision will help him in deciding it?

Options:

Financing Decision

Dividend Decision

Interest Decision

Investment Decision

Correct Answer:

Dividend Decision

Explanation:

The correct answer is Option (2) → Dividend Decision.

The financial decision that will help Anand in deciding how to apportion the profits is the Dividend Decision.

The dividend decision involves determining how much of the net profit will be distributed to shareholders as dividends and how much will be retained in the company for reinvestment or other purposes. Since Sultan Cables Ltd. earned a net profit, Anand will need to decide whether to pay out some of this profit as dividends or retain it for future growth or investment.