Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Management

Question:
Name the financial decision which relates to disposal of profits.
Options:
Dividend decision
Investment Decision
Financing decision
Capital budgeting decision
Correct Answer:
Dividend decision
Explanation:
The third important decision that every financial manager has to take relates to the distribution of dividend. Dividend is that portion of profit which is distributed to shareholders. The decision involved here is how much of the profit earned by company (after paying tax) is to be distributed to the shareholders and how much of it should be retained in the business.