Performance Fees Based on Profits Earned by the Fund Are

question 77

Multiple Choice

Performance fees based on profits earned by the fund are typical of

• A) hedge funds.
• B) exchange-traded funds.
• C) closed-end investment companies.
• D) open end mutual funds.

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Definitions:

Legitimate Power

A form of power derived from having a recognized and official position within an organization, allowing the holder to influence others.

Information Flow

The movement of information within an organization, from the collection, processing, and dissemination of data, to effectively support decision-making and organizational activities.

Legitimate Power

The authority that a leader or an organization holds, which is recognized and accepted by others as rightful and appropriate.

Formal Authority

A type of power derived from the position or rank one holds within an organization, entitling them to enforce rules and make decisions.