Which of the Following Describes a Benefit Enjoyed by Investors

question 112

Multiple Choice

Which of the following describes a benefit enjoyed by investors in mutual funds?

• A)Guaranteed dividends payments are received annually.
• B)Investment risk is eliminated.
• C)Investors buy an ownership interest in many different companies.
• D)Investors exercise managerial authority in many different companies.

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Definitions:

Static Planning Budget

A budget designed for a single level of activity and does not change even if the level of activity changes.

Fixed Costs

Expenses that remain constant for a company irrespective of the level of production or sales.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, providing a more relevant comparison of actual to budgeted performance.

Total Variable Cost

The sum of all variable costs (costs that change with production volume) involved in producing a specific level of output.