Which Statement Accurately Describes the Portfolio Effect

question 35

Multiple Choice

Which statement accurately describes the portfolio effect?

• A) Ecosystem stability creates a positive indirect effect on herbivores.
• B) Community stability is enhanced when the population of one species cancels out variation in another such that the overall abundance in the community remains the same.
• C) Community biodiversity does not alter the net effect of predators in a diverse population.
• D) The greater the biomass of an ecosystem the less likely it is to be altered by disturbances.

---

Definitions:

Liquidation

In regard to corporations, the process by which corporate assets are converted into cash and distributed among creditors and shareholders according to specific rules of preference. In regard to bankruptcy, a proceeding under Chapter 7 of the Bankruptcy Code, often referred to as ordinary or straight bankruptcy, in which a debtor states his or her debts and turns all nonexempt assets over to a trustee, who sells the nonexempt assets and distributes the proceeds to creditors. With certain exceptions, the remaining debts are then discharged, and the debtor is relieved of the obligation to pay the debts.

Dissolution

The process of legally terminating the existence of an entity such as a corporation or partnership.

Withdraw

The act of formally leaving a particular status or position, such as removing oneself from a legal case or retracting a statement.

Limited Partnerships

Business arrangements where at least one partner has unlimited liability while others have liability limited to the extent of their investments.