Which One of the Following Statements Is Not a Characteristic

question 44

Multiple Choice

Which one of the following statements is not a characteristic of mutual funds?

• A)they are always considered to be financial institutions.
• B)they raise money by selling shares to investors.
• C)they pool the savings of many investors.
• D)they offer professional management and portfolio diversification.

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Definitions:

Overhead Expenses

Ongoing costs involved in operating a business that are not directly tied to providing goods or services, such as rent, utilities, and administration costs.

Profit

The financial gain obtained when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes needed to sustain the activity.

Selling Price

The selling price is the amount a buyer pays to acquire a product or service from a seller.

Marked Down

A reduction in the price of an item or product to encourage sale.