One of the Major Criticisms of Microfinance or Microcredit Is

question 13

Multiple Choice

One of the major criticisms of microfinance or microcredit is that:

• A)the loans create a dependency on foreign handouts.
• B)the loans do not help grow businesses that can hire employees.
• C)the loans are rarely repaid.
• D)the international community is not involved in making these investments.
• E)the loans are not made to people, only firms.

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Definitions:

Retained Earnings

The portion of net income that is retained by the company rather than distributed to its shareholders as dividends.

Cash Dividend

A payment made by a corporation to its shareholders, usually as a distribution of profits in the form of cash.

Declaration of Dividends

The formal announcement by a company's board of directors to distribute profits to shareholders, specifying the dividend amount and payment date.

Liquidating Dividend

A type of dividend paid by a company from its capital base, essentially returning part of the investors' original investment.