Business Studies

Business Finance

Medium

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:

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

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

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

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

✅ Correct Option: 1

Dividend decisions are affected by stock market reaction to dividends, legal constraints under the Companies Act, and contractual constraints in loan agreements, so options 2, 3 and 4 are correct factors. The correct factor is that large, reputed companies have easy access to the capital market, not to SEBI. Hence option 1 is the incorrect statement.

2025: 27 May Shift 2

Which concept of financial management affects both the profitability and the financial risk?

2022: 15 July Shift 2

A firm's ability to borrow at a lower rate

2022: 16 July Shift 2

Ramanuj is thinking of starting an advertising agency. What will be the amount of working capital requirement for him?

2022: 6 Oct Shift 1

Rajat is planning the break up of his finance to know the amount of capital that he will utilize to purchase fixed assets and current assets. Identify the financial decision taken by Rajat

2025: 13 May Shift 1

Financial Planning of a company is essentially known as ________?

2026: 11 May Shift 1

Which among the following are considered for calculating working capital out of below mentioned balance sheet items?

A. Stock

B. Marketable Securities

C. Prepaid Expenses

D. Debentures

Choose the correct answer from the options given below:

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:

Solution

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