Question

A company pays dividend out of _____________________.

• A. Profits of the company for year for which dividends are to be paid.
• B. Undistributed profit of the previous financial years.
• C. Money provided by the central and state governments for the payment of dividends in pursuance of their guarantors.
• D. All of these.

Answer 1

The correct option is D All of these.

Dividends - Dividends are the sum of money to be paid to the members of the company out of the profits made by the company.

Sources od dividend :-

1. Profits of the compnany for the year for which dividends are to be paid.

2. Undistributed profit of the previous financial years.

3. Money provided by the central and state governments for the payment of dividends in pursuance of their guarantors.