Which of the following is responsible for deciding whether a dividend is paid...Which of the following is responsible for deciding whether a dividend is paid by a company?Question 1Answera.International Accounting Standards Board.b.Directors of the company.c.Auditors of the company.d.Creditors of the company.
Question
Which of the following is responsible for deciding whether a dividend is paid...Which of the following is responsible for deciding whether a dividend is paid by a company?Question 1Answera.International Accounting Standards Board.b.Directors of the company.c.Auditors of the company.d.Creditors of the company.
Solution
The entity responsible for deciding whether a dividend is paid by a company is the directors of the company. So, the answer is b. Directors of the company. They are the ones who make the decision about whether profits are retained in the business or distributed to shareholders in the form of dividends.
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