CBSE Class 12 Business Studies 2022 Delhi set 1

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Ananta Ltd. is a company dealing in ready-made garments from last many years. Recently the profit of the company have started increasing. The finance manager decided to retain the profit instead of distributing it among shareholders.
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Question : 16
Total: 19
Identify and state the financial decision taken by finance manager in the above case.
Solution:  
The Finance Manager of Anant Ltd. has taken a Dividend Decision.
It refers to the decisions regarding the distribution of profit or surplus of the company. The profits can either be distributed to the shareholders in the form of dividends or retained by the company itself.
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