Which of the Following Statements Is True

question 33

Multiple Choice

Which of the following statements is true?

• A) A bank's assets are its sources of funds.
• B) A bank's liabilities are its uses of funds.
• C) A bank's balance sheet shows that total assets equal total liabilities plus equity capital.
• D) All of the above are true.

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Definitions:

Partnership

A business organization in which two or more individuals manage and operate the business in accordance with the terms and objectives set out in a Partnership Agreement.

Limited Liability Companies

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

Distributions

The payment of dividends or other assets to a company's shareholders as determined by the board of directors.

Management Rights

The rights retained by employers, allowing them to operate and manage their business without interference from the workforce.