What dividends does Bezique pay?

• A. £200,000 per year
• B. £250,000 per year
• C. £1,000,000 per year
• D. £500,000 per year

Answer: (B)

Dividends are the portion of profits a company returns to its shareholders. In this scenario, Bezique adopts a steady dividend policy that pays £250,000 each year. This amount is chosen to provide predictable, reliable returns to investors while leaving enough profits and cash in the business to fund ongoing operations and planned growth. Paying this specific level makes sense because it reflects a balanced approach: enough distribution to satisfy shareholders, but not so large a payout that it would threaten the company’s financial flexibility. If you were to choose a much higher payout, it could strain cash flow; a much lower payout would reduce shareholder returns. Thus, £250,000 per year aligns with a stable, sustainable dividend policy, which is why it’s the best answer.