What Is Meant by the Term 'Dividend Policy

Multiple Choice

What is meant by the term 'dividend policy'?

A) The determination of the dividend policies of industrial firms by government, designed to encourage earnings retention for investment
B) The desired pattern of dividends over time when a company determines the proportion of profits to be paid out to shareholders, usually done periodically
C) The balance to be struck between paying interim dividends and final dividends
D) The selection of specific groups of shareholders to receive dividends this year