Answer in one sentence.
1. What is dividend warrant ?
Ans: A dividend warrant is a cheque sent by a company to a shareholder for payment of dividend to the registered address of the shareholder.
2. What is capitalisation of reserve ?
Ans: Capitalisation of reserves is to capitalise profits of the company and to provide additional (bonus) shares to the existing equity shareholders without any additional cost.
3. What is Dividend ?
Ans: Dividend is the portion or part of the profits of the company which is distributed to the equity shareholders of the company.
4. Who recommends the rate of dividend ?
Ans: Board of Directors recommends rate of dividend.
5. Which type of shareholders enjoy the benefit of Bonus Shares ?
Ans: Existing equity shareholders of the company enjoy the benefits of Bonus Shares.
6. What is meant by payment of dividend electronically ?
Ans: A company can use an online payment facility to make payments of dividends to their shareholders i.e. electronically through ECS, NEFT, etc. It is known as the payment of dividends electronically.