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Can a company declare dividends out of profits earned prior to its incorporation? Provide a legal perspective.a)Yes, as these profits are part of the company's overall capital.b)Yes, since these profits were earned by the business entity.c)No, as the company did not exist during the period these profits were earned.d)No, unless these profits are categorized as capital profits.Correct answer is option 'C'. Can you explain this answer? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about Can a company declare dividends out of profits earned prior to its incorporation? Provide a legal perspective.a)Yes, as these profits are part of the company's overall capital.b)Yes, since these profits were earned by the business entity.c)No, as the company did not exist during the period these profits were earned.d)No, unless these profits are categorized as capital profits.Correct answer is option 'C'. Can you explain this answer? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Can a company declare dividends out of profits earned prior to its incorporation? Provide a legal perspective.a)Yes, as these profits are part of the company's overall capital.b)Yes, since these profits were earned by the business entity.c)No, as the company did not exist during the period these profits were earned.d)No, unless these profits are categorized as capital profits.Correct answer is option 'C'. Can you explain this answer?.

Solutions for Can a company declare dividends out of profits earned prior to its incorporation? Provide a legal perspective.a)Yes, as these profits are part of the company's overall capital.b)Yes, since these profits were earned by the business entity.c)No, as the company did not exist during the period these profits were earned.d)No, unless these profits are categorized as capital profits.Correct answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for B Com. Download more important topics, notes, lectures and mock test series for B Com Exam by signing up for free.

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