What is the primary function of the finance companies? How do finance companies differ from depository institution?

Help me study for my Business class. I’m stuck and don’t understand.

Chapter 3 problems

  • Problem 1 – What is the primary function of the finance companies? How do finance companies differ from depository institution?
  • Problem 2 –What are the three major types of finance companies? To which market segments do each of these types of companies provide services?
  • Problem 6 – What advantages do finance companies have over commercial banks in offering services to small business customers? What are the major subcategories of business loans? Which category is largest?
  • Problem 8 – How do finance companies make money? What risks does this process entail? How do these risks differ for a finance company versus a commercial bank?

Chapter 4 problems

  • Problem 3 – What are the different types of firms in the securities industry, and how does each type differ from the others?
  • Problem 16 – what are different types of venture capital firms? how do institutional venture capital firms differ from angel venture capital firms?

Note that I took all these questions from

  • Saunders, Anthony, and Marcia Milton Cornet, Financial Institutions Management: A Risk Management Approach, 9th ed., New York, McGraw-Hill Education, 2018.

What is the primary function of the finance companies? How do finance companies differ from depository institution?

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