What Term Refers to Financial Entities Outside of the Formal

question 45

Multiple Choice

What term refers to financial entities outside of the formal banking structure that engage in lending and credit-issuing activities?

• A)credit unions
• B)shadow banks
• C)quasi-banks
• D)lending houses

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Definitions:

Limited Liability Company

A business structure that combines the pass-through taxation of a partnership or sole proprietorship with the limited liability protections of a corporation.

Organizational Form

Refers to the structure and design of an organization, determining the hierarchy, communication flow, and allocation of responsibilities.

Limited Liability

A legal status where a person's financial liability is limited to a fixed sum, most often the value of a person's investment in a corporation or partnership.

Management

The process of dealing with or controlling things or people, often within an organization.