Question

What does the company depend on for expansion when profits are distributed as dividends?

a.

Internal finance

b.

External finance

c.

Only Retained Earnings

d.

Only Regulatory aspects of different sources of finances

Answer: (b).External finance Explanation:When profits are distributed as dividends, for expansion, the company depends on external finance.

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Q. What does the company depend on for expansion when profits are distributed as dividends?

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