Q.Explain the following term/concept.
Investment decision

The one-word answer is Capital Structure — the composition or proportion of the different long-term sources of finance in a company's total capitalisation.

Every company raises funds from several sources — equity share capital, preference share capital, retained earnings, debentures and long-term loans. Capital structure refers to the relative proportion in which these owned and borrowed funds are combined to make up the total capital.

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A company pays taxes to the government. Dividend is paid to shareholders out of profit and interest is paid to creditors/debenture-holders, but only tax is the compulsory payment a company makes to the government.

Every company that earns income is a separate taxable entity and must pay income tax (and other statutory dues such as GST) to the government. This is a legal obligation, not a voluntary distribution.

The other options are payments to different stakeholders and not to the government: …