Micro and Small Enterprises in the Majority of Muslim Countries

question 53

Multiple Choice

Micro and small enterprises in the majority of Muslim countries are by and large excluded from the formal financial services industry because:

• A) Small enterprises do not qualify to get financing from traditional sources
• B) Religious beliefs of entrepreneurs prevent them from seeking interest-bearing loans
• C) Banks usually prefer to extend their services to large and well-established businesses
• D) All of the above

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Definitions:

Management Compensation

The total remuneration, including salary, bonuses, and benefits, given to executives and managers in a company.

Agency Problem

A conflict of interest inherent in any relationship where one party is expected to act in another's best interest.

Stock Options

Stock options grant the holder the right, but not the obligation, to buy or sell a company's stock at a predetermined price before a specified date.

Articles Of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation, outlining its management structure, purpose, and other fundamental details.