The Major Advantage of Investment Funds Is That

question 15

Multiple Choice

The major advantage of investment funds is that

• A) they allow people with limited funds to diversify their investment.
• B) they encourage households to spend their money on current consumption.
• C) fund managers are replaced by household administrators.
• D) they always use index funds to limit investor risk.

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Definitions:

Generate Revenues

The process of earning income from business activities, such as sales of goods and services.

Joint Costs

Expenses that are incurred in the process of producing two or more products up to the point where the products are separately identifiable.

Budgeted Costs

Estimated expenses planning for future periods, which companies use for managing financial resources and controlling expenditures.

Responsibility Accounting

This accounting methodology focuses on collecting, summarizing, and reporting financial information related to the responsibilities of individual managers.