Briefly Discuss the Four Ways That Can Cause Financial Intermediation

question 154

Essay

Briefly discuss the four ways that can cause financial intermediation to fail.

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Definitions:

Partnerships

An authorized business setup involving two or more persons, sharing both the responsibilities of management and the financial gains.

Corporate Finance

The area of finance dealing with the sources of funding and the capital structure of corporations, and the actions that managers take to increase the value of the firm to the shareholders.

Ratified

Ratification refers to the formal approval or confirmation of an agreement or treaty, often after the act has been signed or provisionally applied.

Lease

A contractual agreement where one party, the lessor, grants the other party, the lessee, the right to use a property or asset for a specified period in exchange for rental payments.