✓ Board-verified
Business Studies · 2024 · 1 mark
CBSE 2024 · Region 4 · Set 1 · Q5
Read the following statements Assertion (A) and Reason (R). Choose the correct option from the given options. Assertion (A): Amount of Earnings is a…
Read the following statements Assertion (A) and Reason (R). Choose the
correct option from the given options.
Assertion (A) : Amount of Earnings is a major determinant of the
decision about dividend.Reason (R) : Dividends are paid out of current and past earnings.
Official answer
(A)
Both Assertion (A) and Reason (R) are true and Reason (R) is correct explanation of Assertion (A).
Marking-scheme solution
(A)
Both Assertion (A) and Reason (R) are true and Reason (R) is
correct explanation of Assertion (A).
More from Financial Management
- Which of the following is NOT a factor affecting capital structure of a company?2023 · asked 2×
- State any three points of importance of Financial Planning. OR State any three factors that determine the requirement of fixed capital of a company.2023 · asked 2×
- Read the following statements carefully: Statement I: Higher fixed operating costs result in higher business risk. Statement II: If the firm’s…2026
- Match the factors affecting fixed capital requirements given in the Column-I with their explanations given in Column-II: Column – I Column - II A…2023
- 'Payal Ltd.' plans to start manufacturing solar panels which will require a significant amount of investment in machinery. The machinery which they…2025
- State any four factors that affect the decision related to how much profit is to be distributed and how much profit is to be retained in the business.2023
- The risk related to inability to meet fixed financial charges like interest payment and other repayment obligations is known as:2025
- ‘Ratan Ltd.’ and ‘Lara Ltd.’ are two companies with each having a capital employed of ₹ 20,00,000. ‘Ratan Ltd.’ had raised funds by issuing shares…2026
CBSE Class 12 Business Studies past-paper question from the 2024 board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.