Tag: financial management

Questions Related to financial management

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. 

When dividend out of stock premiums is to be declared __________.

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

  1. stockholders need not be informed

  2. stockholders need not be consulted about them

  3. stockholders must be informed and consulted about them

  4. Both (a) and (b)

Show answer
Correct Option: C

Which of the following is known as the melon?

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

  1. Cash dividend

  2. Stock dividend

  3. Scrip dividend

  4. Property dividend

Show answer
Correct Option: B

When a dividend is paid at the usual rate, it is designated as a ________.

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

  1. regular dividend payment

  2. stable dividend policy

  3. extra dividend policy

  4. irregular dividend

Show answer
Correct Option: A

Corporations encourage irregular dividend payments due to

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

  1. Unsuccessful operations

  2. Earnings are fluctuating

  3. Impossibility to pay dividend regularly

  4. All of the above

Show answer
Correct Option: D

Which of the following factors dominate the dividend policy?

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

  1. Ownership considerations

  2. Firm-oriented considerations

  3. Both (a) and (b)

  4. Legal considerations

Show answer
Correct Option: B

Which of the following dividend payments lead to a transfer of stock from a speculative class into an investment category?

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

  1. Regular dividend payments

  2. Stable dividend payments

  3. Irregular dividends

  4. Extra dividends

Show answer
Correct Option: B