XYZ Technology Inc. is a rapidly growing technology company that has recently achieved significant success with its innovative products and services. The company is now considering its dividend policy as it has accumulated substantial cash reserves. The management team is debating between initiating a dividend payment program or continuing to allocate excess cash towards research and development, acquisitions, and share buybacks.

Based on the above situation :

a$.$ Identify TWO $(2)$ factors that management team should consider when determining the company's dividend policy.

$(8$ marks$)$

b$.$ Explain THREE $(3)$ recommendations for XYZ Technology Inc. on how to approach its dividend policy decision, considering both short$-$term and long$-$term implications.

$(12$ marks$)$