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What is the primary purpose of the Central Government's involvement in allowing a company to declare or pay dividend without providing for depreciation?
  • a)
    To boost the company's reputation among shareholders.
  • b)
    To encourage companies to invest in research and development.
  • c)
    To protect the interest of the public and ensure fair dividend distribution.
  • d)
    To promote healthy competition among companies.
Correct answer is option 'C'. Can you explain this answer?
Verified Answer
What is the primary purpose of the Central Government's involvement in...
The Central Government's involvement in allowing a company to declare or pay dividend without providing for depreciation is primarily to protect the interest of the public. It ensures that companies do not distribute dividends that are not backed by actual profits, maintaining transparency and fairness in dividend distribution.
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What is the primary purpose of the Central Government's involvement in allowing a company to declare or pay dividend without providing for depreciation?a)To boost the company's reputation among shareholders.b)To encourage companies to invest in research and development.c)To protect the interest of the public and ensure fair dividend distribution.d)To promote healthy competition among companies.Correct answer is option 'C'. Can you explain this answer? for B Com 2025 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about What is the primary purpose of the Central Government's involvement in allowing a company to declare or pay dividend without providing for depreciation?a)To boost the company's reputation among shareholders.b)To encourage companies to invest in research and development.c)To protect the interest of the public and ensure fair dividend distribution.d)To promote healthy competition among companies.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for What is the primary purpose of the Central Government's involvement in allowing a company to declare or pay dividend without providing for depreciation?a)To boost the company's reputation among shareholders.b)To encourage companies to invest in research and development.c)To protect the interest of the public and ensure fair dividend distribution.d)To promote healthy competition among companies.Correct answer is option 'C'. Can you explain this answer?.
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