Which is the Correct Order of Entities That Benefit When Banks Make a Profit?
When banks make a profit, shareholders benefit through dividends, companies receive financial support for expansion, leading to job creation and economic growth.
by Sai V
Updated Oct 27, 2023
Article continues below advertisement
Which is the Correct Order of Entities That Benefit When Banks Make a Profit?
A. Employees, Shareholders, and the Economy
B. Shareholders, Shoppers, and the Economy
C. Employees, Companies, and the Economy
D. Shareholders, Companies, and the Economy
The correct answer is: D. Shareholders, Companies, and the Economy.
When banks make a profit, shareholders are the first to benefit through dividends. The remaining profit is often used to provide loans to companies, enabling them to expand their operations. This expansion creates job opportunities and stimulates economic growth, benefiting both employees and the overall economy. Therefore, shareholders benefit directly, companies benefit from financial support, and the economy thrives due to increased employment and business activity.
Related Articles
Quiz Questions On Insurance and Risk Management - 3
374 days ago
Quiz Questions on Credit Management and Awareness
375 days ago
Disclaimer : The above information is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.