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Question

Tata International Ltd. earned a net profit of Rs.50crores. Ramesh, the finance manager of Tata International Ltd.wants to decide how to appropriate these profits. Which of the following factors will help him in taking this decision?

A
Stability of earnings
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B
Taxation policy
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C
Legal constraints
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D
Amount of earnings
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Solution

The correct options are
A Stability of earnings
B Taxation policy
C Legal constraints
D Amount of earnings
The following factors that would help him take the decision are:
1. Amount of earnings
2. Legal constraints
3. Taxation policy
4. Stability of earnings

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