Why Do Institutions Form

question 24

Multiple Choice

Why do institutions form?

• A)to ensure consistency and continuity
• B)to complicate social life
• C)to quickly formalize social norms
• D)to maintain the status quo

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Definitions:

Declaration

An official statement or announcement made by a person or an organization.

Convertible Securities

Financial instruments, such as bonds or preferred shares, that can be converted into a specified amount of another asset, typically shares of the issuing company.

Diluted Earnings

Net income available to common shareholders, adjusted for the effects of all potential dilutive securities.

Ranking

Ordering or grading things or individuals in terms of quality, importance, or performance.