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Nature and Scope of FM

Quick practice

Question 1 of 5

Assertion (A): The irregular dividend policy is adopted by the companies which lack liquid resources.


Reason (R): Companies fear that regular dividends would adversely affect the organisation.

Codes

A

(A) and (R) are correct but (R) is not the correct explanation of (A)

B

(A) is incorrect but (R) is correct

C

(A) and (R) are correct and (R) is the correct explanation of (A) 

D

(A) is correct but (R) is incorrect

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