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Even a profitable company may not declare a dividend if it is short of:
ACash
BStaff
CSpace
DStock
Answer & Solution
Correct answer: A. Cash
1. Paying dividend means an outflow of cash.
2. Enough cash must be available.
3. So the cash flow position matters.
_Source: NCERT Class 12 Business Studies Part II, Chapter 9, Financial Management._
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