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One of the decisions in financial management is how much of the profit earned is to be distributed to the shareholders and how much of it should be retained. Identify the decision involved.
  • a)
    Dividend decision
  • b)
    Financing decision
  • c)
    Investment decision
  • d)
    Capital structure decision
Correct answer is option 'A'. Can you explain this answer?
Most Upvoted Answer
One of the decisions in financial management is how much of the profit...
A financial decision which is concerned with deciding how much of the profit earned by the company should be distributed among shareholders (dividend) and how much should be retained for the future contingencies (retained earnings) is called dividend decision
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One of the decisions in financial management is how much of the profit earned is to be distributed to the shareholders and how much of it should be retained. Identify the decision involved.a)Dividend decisionb)Financing decisionc)Investment decisiond)Capital structure decisionCorrect answer is option 'A'. Can you explain this answer?
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