Financial Services Sector Overview
16 Questions
0 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the core role that the financial services sector performs within the economy?

  • Providing employment opportunities
  • Regulating global financial markets
  • Allocating capital from savers to businesses (correct)
  • Facilitating international trade

    • How does the investment chain benefit savers and businesses?

  • By limiting the growth opportunities for businesses
  • By discouraging savings and promoting excessive borrowing
  • By enabling savers to invest in businesses for potential returns (correct)
  • By weakening the competitiveness of financial markets

    • What happens if the investment chain is inefficient?

  • Financial markets become more competitive
  • Savers lose their invested capital
  • Uninvested capital remains unallocated (correct)
  • Businesses experience rapid growth

    • How does the financial services sector contribute to raising productivity?

    <p>By allocating capital to growing enterprises</p> Signup and view all the answers

    Why is the efficiency of the investment chain critical?

    <p>To allocate uninvested capital to productive businesses</p> Signup and view all the answers

    In what way does the financial services sector enhance the competitiveness of financial markets globally?

    <p>By improving the allocation of capital through the investment chain</p> Signup and view all the answers

    Which documents are required to be lodged when forming a company in the UK?

    <p>A Memorandum of Association and Articles of Association</p> Signup and view all the answers

    What is the key difference between private companies and public companies according to the text?

    <p>Public companies have 'plc' in their names, while private companies have 'limited' or 'ltd'.</p> Signup and view all the answers

    Which authority should you lodge the Articles of Incorporation with in the US?

    <p>Secretary of State office</p> Signup and view all the answers

    What is the significance of having 'plc' in the name of a UK company?

    <p>It signifies that the company is publicly listed on a stock exchange.</p> Signup and view all the answers

    What type of companies can issue shares to the public?

    <p>Public companies only</p> Signup and view all the answers

    What is the main difference between HSBC Holdings and Virgin Holdings with regards to stock exchanges?

    <p>HSBC Holdings is listed on multiple stock exchanges, while Virgin Holdings is not listed on any stock exchange.</p> Signup and view all the answers

    In the context of shareholder liability, what does it mean to have limited liability?

    <p>Shareholders are only liable for the amount they agreed to pay to the company on initial subscription.</p> Signup and view all the answers

    What is the common characteristic of ordinary shares, common shares, and common stock?

    <p>They carry the full risk and reward of investing in a company.</p> Signup and view all the answers

    What gives shareholders the power to vote yes or no on resolutions proposed by company directors at meetings?

    <p>Ownership of ordinary shares</p> Signup and view all the answers

    How are dividends declared by companies related to shareholders?

    <p>Dividends need to be ratified by shareholders before being declared as payable.</p> Signup and view all the answers

    More Like This

    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser