Diversification

question 51

Multiple Choice

Diversification:

• A) reduces risk but also reduces expected returns.
• B) increases risk but also increases your expected returns.
• C) reduces risk but does not reduce your expected returns.
• D) reduces risk and increases your expected returns.

Describe the process and significance of the secretary of state's approval of articles of incorporation.

Identify the concept of watered shares and the responsibility of the board of directors in share valuation.

Explain the process of capitalizing a newly formed corporation, including issuing equity and debt securities.

Understand the legal framework under the Model Business Corporation Act (MBCA) regarding share issuance, promoter's liability, and shareholder rights.

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Definitions:

Throat Culture

A diagnostic test that involves swabbing the throat to identify the presence of bacteria or viruses causing infection.

Withdrawing Medication

The process of stopping or reducing a medication under the guidance of a healthcare provider.

Alcohol Wipe

A small piece of material saturated with alcohol used for disinfection of surfaces or skin before medical procedures or injections.

IM Injection

A method of delivering medication directly into the muscles, where it is quickly absorbed into the bloodstream.