Which Type of Organisation Most Commonly Works to Alleviate the Conflict

question 23

Multiple Choice

Which type of organisation most commonly works to alleviate the conflict of preferences between primary investors and ultimate borrowers?

• A) Firms
• B) Financial institutions
• C) Transformed asset holders
• D) Government

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Definitions:

Cash Dividend

This is a payment made by a company out of its earnings to its shareholders, usually in the form of cash.

Earnings

The amount of profit that a company generates during a specific period, which can be used to measure the company's financial health and profitability.

Stockholders

Individuals or entities that own shares of stock in a corporation, having ownership interest in the company.

Outstanding Shares

The total number of shares of a corporation's stock that are currently owned by all its shareholders, including shares held by institutional investors and restricted shares held by insiders and company officers.