Homework Answers
Dividend is paid to every shareholders of the organization. This is a part of revenue earned from the business.
After preparing the income statement organization plans there money required for expansion, purchase of assets of keeping fund a site for future purchases.
After satisfied all the requirement if there is balance amount in retained earning than it can be distributed as dividend.
So it means first three options are not correct.
Answer = Option 4 = When the business doesn't have a better use for the money
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