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

(a) Financing decision

(b) Capital budgeting decision

(c) Dividend decision

(d) Investment 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, or 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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