If You Need to Withdraw Your Investment Money in Two

question 16

Multiple Choice

If you need to withdraw your investment money in two years,you should probably invest in:

• A)stocks.
• B)mutual funds.
• C)certificates of deposits.
• D)long-term government bonds.
• E)long-term corporate bonds.

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Definitions:

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and allocated overhead.

Contribution Margin Ratio

A financial metric that shows what percentage of sales revenue is not consumed by variable costs and therefore contributes to covering fixed costs.

Segment Margin

The profit or loss generated by a particular segment of a business, after accounting for direct and indirect costs.

Net Operating Income

The profit generated from a company's operational activities after deducting operating expenses from operating revenues.