Which of the Following Statements Concerning the Mutual Form of Ownership

question 76

Multiple Choice

Which of the following statements concerning the mutual form of ownership of savings banks are true?

• A) The mutual form of ownership accentuates the principal-agent problem that exists in corporations.
• B) More capital is available, contributing to the safety of mutual savings banks compared to other banking organizations.
• C) Managers of mutual savings banks are more risk averse than in the corporate form, because the value of their ownership does not increase if the firm does well.
• D) All of the above are true.
• E) Only A and B of the above are true.

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