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Business Studies · 2022 · 3 marks
CBSE 2022 · Region 4 · Set 2 · Q6
Explain any two factors affecting the ‘Dividend decision’
of a company.
Marking-scheme solution
Factors affecting dividend decision of a company are:
(i)
Amount of earnings.
(ii)
Stability of earnings.
(iii)
Stability of dividends.
(iv)
Growth opportunities.
(v)
Cash Flow position.
(vi)
Shareholders preference.
(vii)
Taxation policy.
(viii)
Stock market reaction.
(ix)
Access to capital market.
(x)
Legal constraints.
(xi)
Contractual constraints.
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CBSE Class 12 Business Studies past-paper question from the 2022board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.