A Mutual Fund Is Generally More Tax Efficient When It

question 24

Multiple Choice

A mutual fund is generally more tax efficient when it has a turnover rate and a dividend yield.

• A) low; low
• B) low; high
• C) high; low
• D) high; high

---

Definitions:

Board of Directors

A body of people chosen by stockholders to supervise and make significant decisions regarding the corporation's management.

Corporate Management

The executives and senior officials responsible for leading and managing a corporation, including its strategies, operations, and policies.

Day-To-Day Business

Refers to the regular, routine operations and activities carried out by a business or organization to maintain its function.

Responsible Person Doctrine

A legal principle that holds an individual in a business or enterprise accountable for ensuring compliance with tax laws and regulations.