Which of the following make banks a business entity?

Lending loans

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Link between depositors and borrowers

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Profit and service-oriented

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Act as a business

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Solution

The correct option is D Act as a business
Profit or service orientation and banking as a business are what make banks a business entity.

Banks earn their profits by mobilising depositors' money to the borrowers and keeping a portion of the interest charged.

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To which of the following concerns does the business entity principle not apply?

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