Tag: organisation of commerce and management

Questions Related to organisation of commerce and management

The following are the managerial considerations influencing dividend policy
(1) Availability of cash
(2) Restrictions by the Financial Institutions
(3) Management Control
(4) Dividend policy as a financing decision
Of these

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. 1 and 3 are correct

  2. 2 and 4 are correct

  3. 1, 2 and 4 are correct

  4. All are correct

Show answer
Correct Option: D

The word 'dividend' includes the following besides cash

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. Distribution of rights to acquire shares in another company is distribution of dividend

  2. Where dividend is paid in the form of shares in another company, the dividend must be values at the market value of shares

  3. Bonus shares issued by capitalising profits are not dividend

  4. All the above

Show answer
Correct Option: D

'Dividend' is defined under the fol1lowing section if Income Tax Act, 196

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. Section 2(20)

  2. Section 2(22)

  3. Section 5(22)

  4. Section 5(33)

Show answer
Correct Option: B

Property dividends are distributed under ___________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. normal conditions

  2. exceptional conditions

  3. Both (a) and (b)

  4. None of the above

Show answer
Correct Option: B

The dividend policy directly affect its _________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. wealth

  2. cost of capital

  3. profit

  4. output

Show answer
Correct Option: B

The characteristics of a scrip dividend is/are ______.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. it is in a form of a promissory note

  2. it bears interest and is accepted as a collateral security

  3. Both (a) and (b)

  4. None of these

Show answer
Correct Option: C

Dividends paid in the ordinary course of business are known as __________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. cash dividends

  2. profit dividends

  3. stock dividends

  4. property dividends

Show answer
Correct Option: B

The dividend policy affects __________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. the financial structure of corporation

  2. the flow of funds, corporate liquidity and stock prices

  3. the investor satisfaction with the return on his investment

  4. All the above

Show answer
Correct Option: D

Dividends paid from capital are known as ___________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. profit dividends

  2. cash dividends

  3. liquidation dividends

  4. property dividends

Show answer
Correct Option: C

Dividend policy is a ________.

functional area of management financial management nature and significance of management organisation of commerce and management business studies

  1. managerial decision

  2. financing decision

  3. dividend decision

  4. subjective value

Show answer
Correct Option: B
Explanation:

Dividend policy refers to the policy that deals with the percentage of profit which are yield as dividend to the shareholders of a company which is a financial decision as it includes the finance of the company which can be retained in the company or given as dividend.