Question

Which is the core order of entities that benefit when banks make a profit?

a) Shareholders, Customers, Employees
b) Employees, Shareholders, Customers
c) Customers, Shareholders, Employees
d) Shareholders, Employees, Customers

Answer 1

Shareholders are the first to benefit when banks make a profit, followed by employees and then customers.

Step-by-step explanation:

The correct answer is d) Shareholders, Employees, Customers.

When banks make a profit, their shareholders are the first to benefit. Shareholders are the individuals who own a portion of the bank and have invested capital in it.

Next, the employees of the bank benefit. When the bank is profitable, it can afford to provide better wages and benefits to its employees.

Finally, the customers of the bank benefit. Profitable banks are able to offer competitive interest rates on loans, better customer service, and a wider range of products and services.