Dividend is an obligation to be paid by a company every year.
Q.1 (B) (4) Dividend is an obligation to be paid by a company every year.
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Answer: Interest is an obligation to be paid by a company every year.
Interest on debentures, deposits and loans is a fixed obligation payable even if there is a loss. Dividend is paid only out of profits and only when declared; it is not an obligation.
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· 28 Oct 2026
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