In Selecting Investments Consistent with Your Goals, You Should Consider

question 21

Multiple Choice

In selecting investments consistent with your goals, you should consider

• A) risks, returns, and taxes.
• B) rates of return and taxes only.
• C) annual dividends and taxes only.
• D) the pre- tax rate of return only.

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Definitions:

Disclosed Principal

A disclosed principal is a party whose identity is known by all involved parties at the time a transaction is entered into with an agent.

Undisclosed Principal

is a party in a contractual agreement whose existence and identity are not revealed to the third party at the time of contract formation, often in agency relationships.

Express Authorization

Directly stated or clearly indicated authority given for an action or procedure.

Principal's Intention

In a contractual agreement, it refers to the primary party's goal or objective intended through the contract.