Name the financial decision which relates to the disposal of profits.

Financing decision

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Capital budgeting decision

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Dividend decision

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Investment decision

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Solution

The correct option is C
Dividend decision

Answer (c) Dividend decision
Explanation: The dividend decision is concerned with the quantum of benefits to be allocated among investors. A decision must be made whether the entire profits are to be distributed, to retain all the profits in business, or to keep a piece of benefits in the business and distribute the remaining profits among investors.

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