Final answer:
The correct order of entities that benefit when banks make a profit is shareholders, companies, and the economy. Shareholders receive a return on their investment, companies benefit from increased availability of loans, and it positively impacts the economy by promoting growth and stability.
Step-by-step explanation:
The correct order of entities that benefit when banks make a profit is shareholders, companies, and the economy. Shareholders, as owners of the bank, receive a return on their investment when the bank is profitable. Companies, especially those that have borrowed money from the bank, benefit from a profitable bank as it increases the availability of loans and stimulates economic activity. Lastly, when banks make a profit, it positively impacts the economy by promoting growth and stability.
For example, let's say a bank earns a profit. The shareholders of the bank, including individuals and institutional investors who own shares in the bank, will receive dividends and see an increase in the value of their shares. Additionally, companies that have borrowed money from the bank can benefit from a profitable bank as it may lead to lower interest rates on loans or increased availability of credit, which allows businesses to invest and expand.
In summary, when banks make a profit, the entities that benefit in order are shareholders, companies, and the economy. The profitability of banks plays a crucial role in supporting economic growth.