Dividends can be paid only after all the other obligations of the company have been met.

Question

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Dividends are payments made to shareholders out of a company's profits. However, a company cannot pay dividends until it has fulfilled all of its other obligations, including paying off debts, taxes, and other expenses. This ensures that the company is financially stable and can meet all of its financial obligations before distributing any surplus to its shareholders.

Dividends Can Be Paid Only After All the Other Obligations