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If a Mutual Fund Provides for Automatic Reinvestment,the Reinvested Dividends

question 176

True/False

If a mutual fund provides for automatic reinvestment,the reinvested dividends will not be taxed until the shares are redeemed.


Definitions:

Maneuverability

The ability of an organization or individual to quickly and effectively change directions or strategies in response to external conditions.

Reward Power

The capability to offer something desirable as a means of influencing others' actions or decisions.

Legitimate Power

Power that is officially recognized and derived from a position of authority within an organization or society.

Referent Power

A form of power that stems from being admired or respected, often because of personality, skills, or relationships.

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