Which of the Following Statements Is True

question 44

Multiple Choice

Which of the following statements is true?

• A) Capital adequacy regulations of banks were introduced in 1989.
• B) Capital adequacy regulations require banks to hold, on average, less capital for low-risk assets such as housing loans compared to higher-risk assets such as commercial loans.
• C) Capital adequacy regulations were abolished in 2000.
• D) Capital adequacy regulations of banks were introduced in 1989 and Capital adequacy regulations require banks to maintain levels of capital adequate for the type of activity undertaken, on average, less capital for low-risk assets such as housing loans compared to higher-risk assets such as commercial loans.

Comprehend the role and legitimacy of electronic transactions and electronic agents in business according to the UETA.

Identify and distinguish between different types of agency relationships and the circumstances that can alter these relationships.

Recognize the duties and frequency of accounting that an agent owes to their principal.

Understand the obligations agents have towards their principals, including obedience and the exercise of reasonable judgment.

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Definitions:

Break-even Point

The point at which total costs and total income are equal, so there is no loss or gain, and the business is just covering all its costs with its sales revenue.