A Mutual Fund

question 6

Multiple Choice

A mutual fund:

• A)is a way of investing in a single stock.
• B)offers safety through diversification because a loss in one investment is usually offset by gains in other investments within the fund.
• C)is insured by the FDIC.
• D)is not an investment that is increasing in popularity.
• E)is professionally managed so investors need not monitor fund results.

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Definitions:

Buyout Price

The agreed-upon amount required to purchase someone's interest in a property, business, or contractual obligation, usually predetermined in a contractual agreement.

Nonwrongfully Dissociated

Pertaining to partners or members leaving an entity like a partnership or limited liability company under conditions that do not violate the agreement or law.

Extraordinary Decision

A decision that goes beyond normal or routine operations, often requiring a higher level of authority or consent within an organization.

Unanimous Partner

This term likely relates to the requirement in some partnership agreements that all partners must agree on certain decisions, although it is not a standard legal term.