Answer in one sentence.
1. What is Dividend ?
Ans. Dividend is that part of the profit of the company which is distributed amongst its shareholders by the company.
2. Who has right to recommend Dividend ?
Ans. Board of Directors has right to recommend dividend.
3. What is final Dividend ?
Ans. Final Dividend is paid on actual profits arrived at after closure of books of accounts at the end of the financial year.
4. What is Interim Dividend ?
Ans. Interim Dividend is a part of final dividend and is paid during the year i.e. before the finalization of annual accounts for the year.
5. Who declares Interim Dividend ?
Ans. Interim Dividend is declared by Board of Directors in Board Meeting.
6. Which shares get dividend at a fixed rate ?
Ans: Preference shares get dividend at a fixed rate.
7. Which shares get dividend at a fluctuating rate ?
Ans: Equity shares get dividend at a fluctuating rate.
8. At which Meeting Interim Dividend is decided and declared ?
Ans. Interim Dividend is decided and declared in a Board Meeting by passing a resolution.
9. What is Interest ?
Ans. Interest is an obligation paid by company when it raises borrowing in the form of debentures, deposits, loans etc.
10. State the time within which Unpaid Dividend be transferred to unpaid dividend Account ?
Ans. Unpaid Dividend is transferred to ‘Unpaid Dividend Account’ within 37 days from the declaration of dividend.