Since banks are paid first out of company revenues, they are also considered owners of the companyGroup of answer choicesFalseTrue
Question
Since banks are paid first out of company revenues, they are also considered owners of the companyGroup of answer choicesFalseTrue
Solution
False. While banks may lend money to a company and have a claim on its assets until the loan is paid off, they do not have ownership in the company. Ownership of a company is typically determined by the possession of shares, which give the holder a claim on the company's assets and earnings. Banks
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