Home PYQs UPPSC UPPSC MCQs Prelims 1996 (GS Paper I)

Question

A company declares dividend on:

  1. Issued Capital
  2. Authorised Capital
  3. Subscribed Capital
  4. Total Employed Capital

Answer:

Option A: Issued Capital

Detailed Solution:

The correct answer is “Issued Capital”.

Dividend is a portion of a company's profit that is distributed to its shareholders.

This distribution is based on the number of shares held by each shareholder. Since issued capital represents the total number of shares that have been sold by the company, dividends are declared on this amount.