Dividend & Interest.
Discussion – Dividend and Interest – HSC Board – Easy way to learn and memorized – class 12th – S.P – Notes of source of business finance – Difference between Dividend and Interest, Distinguish between – sources of Capital – Secretarial Practice – Notes, & Distinguish Between – according to the New Textbook for HSC Board –Difference between, Study material, studies notes, study notes.
|Sr. No||Point to Discuss||Dividend||Interest|
|1.||Meaning||Returns on shares is dividend.||A Returns on debenture is interest.|
|2.||Paid||Dividend is paid when company earns profit.||Interest is pad every year whether company earns profit or loss.|
|3.||Rate||The rate of dividend is fluctuated for preference and fixed for equity share.||The rate of interest is fixed.|
|4.||To whom Paid||The dividend is paid to the shareholders.||Interest is paid the debenture holders.|
|5.||Accumulation||Dividend is not accumulated from loss making year into profit making year.||Interest is accumulated from profit making year into loss making year.|
|6.||Interim Payment||Board of Directors can declare interim dividend if authorized by Articles of Association.||There is no interim interest. It is paid as per the terms.|