How much of the profits earned by a company will be distributed as profit and how much will be retained in the business is affected by many factors. Identify which of the factor listed below is incorrect:

Question

Option 1: Large and reputed companies generally have easy access to the Securities and Exchange Board of India.

Option 2: There is impact of the dividend policy on the equity share prices.

Option 3: Certain provisions of the Companies Act place restrictions on payouts as dividend.

Option 4: The companies are required to ensure that the dividend does not violate the terms of the loan agreement.

AfterBoards · Accepted Answer

The answer is 'Large and reputed companies generally have easy access to the Securities and Exchange Board of India.'. View full solution:

CUET Business Studies 2026 13th May Shift 1 PYQs

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