When Borrowers Go Directly to Savers for Funds,it Is Called

question 151

Multiple Choice

When borrowers go directly to savers for funds,it is called ________ finance.

• A) indirect
• B) direct
• C) security
• D) bond
• E) banking

Understand the classification, normal balance, financial statement reporting, and nature (permanent/temporary) of various accounts.

Evaluate the implications of employment decisions on payroll taxes and merit tax rates.

Clarify the impact of employer payroll taxes on employee paychecks.

Explain the purpose of workers' compensation and its cost to the employer.

---

Definitions:

Relief-From-Oppression Provisions

Legal measures available to protect minority shareholders in a company from unfair treatment or oppressive actions by majority shareholders.

Pre-Emptive Right

The right of a shareholder to buy new shares in the same proportion as her current ownership of shares.

Closely Held Corporation

A business entity owned by a small number of shareholders, often involving family members.

Relief-From-Oppression Provisions

These provisions within corporate law allow minority shareholders to petition a court for relief against actions by the majority shareholders that are oppressive or unfairly prejudicial to their interests.