Multiple Choice Questions on Dividend decisions determine the proportion of profit distributed to shareholders and retained in th........... for Common University Entrance Test (CUET) Preparation

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Multiple Choice Questions

Dividend decisions determine the proportion of profit distributed to shareholders and retained in th...........

Business Studies (CUET) FINANCIAL MANAGEMENT
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    Dividend decisions determine the proportion of profit distributed to shareholders and retained in the business. They affect the firm's future earnings and investor perceptions.
    Never affect investor opinions.Incorrect Answer
    Are irrelevant to profit allocation.Incorrect Answer
    Influence both earnings and perceptions.Correct Answer
    Disregard future earnings.Incorrect Answer
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    Explanation:

    Dividend decisions impact both the firm's future earnings and how investors perceive the company.

    They involve determining the right balance between distribution to shareholders and retained profits.

    This balance is crucial for maintaining shareholder satisfaction and supporting future growth.

    By: Parveen Bansal
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