16 Questions
What is the core role that the financial services sector performs within the economy?
Allocating capital from savers to businesses
How does the investment chain benefit savers and businesses?
By enabling savers to invest in businesses for potential returns
What happens if the investment chain is inefficient?
Uninvested capital remains unallocated
How does the financial services sector contribute to raising productivity?
By allocating capital to growing enterprises
Why is the efficiency of the investment chain critical?
To allocate uninvested capital to productive businesses
In what way does the financial services sector enhance the competitiveness of financial markets globally?
By improving the allocation of capital through the investment chain
Which documents are required to be lodged when forming a company in the UK?
A Memorandum of Association and Articles of Association
What is the key difference between private companies and public companies according to the text?
Public companies have 'plc' in their names, while private companies have 'limited' or 'ltd'.
Which authority should you lodge the Articles of Incorporation with in the US?
Secretary of State office
What is the significance of having 'plc' in the name of a UK company?
It signifies that the company is publicly listed on a stock exchange.
What type of companies can issue shares to the public?
Public companies only
What is the main difference between HSBC Holdings and Virgin Holdings with regards to stock exchanges?
HSBC Holdings is listed on multiple stock exchanges, while Virgin Holdings is not listed on any stock exchange.
In the context of shareholder liability, what does it mean to have limited liability?
Shareholders are only liable for the amount they agreed to pay to the company on initial subscription.
What is the common characteristic of ordinary shares, common shares, and common stock?
They carry the full risk and reward of investing in a company.
What gives shareholders the power to vote yes or no on resolutions proposed by company directors at meetings?
Ownership of ordinary shares
How are dividends declared by companies related to shareholders?
Dividends need to be ratified by shareholders before being declared as payable.
Explore the role of the financial services sector in both local and global economies. Learn about the integration and interdependence of trade and investment flows, and the core functions performed by the financial services sector.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
