A Small-Cap Fund Focuses on Firms That Are Relatively Small

question 133

True/False

A small-cap fund focuses on firms that are relatively small and its investment objectives somewhat overlap capital appreciation funds.

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Definitions:

Current Ratio

A financial metric illustrating a firm's capacity to cover its short-term debts within a year, determined by dividing current assets by current liabilities.

Capital Expenditures

Money utilized by an organization to buy, refine, and preserve solid assets such as estates, production sites, or equipment.

Fixed Asset Sales

The process of selling long-term assets, such as property, plant, and equipment, often to generate cash or reduce operational scope.

Company's Strategy

A detailed plan outlining how a business intends to achieve its goals and improve its competitive position in the market.