Which of the Following Is a Major Disadvantage of MUS

question 31

Multiple Choice

Which of the following is a major disadvantage of MUS sampling?

• A) Sample selection is relatively easy.
• B) Sample sizes are relatively small.
• C) It is easy way to test for understatement.
• D) It directly controls for the risk of incorrect acceptance.

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Definitions:

Baltic

The term Baltic often refers to the Baltic Exchange, a marketplace for the trading and settlement of physical and derivative shipping contracts.

Securities Act

A U.S. law enacted in 1933 that governs the sale of securities, aiming to provide investors with transparent information and to prevent fraud.

New Securities

Financial instruments that have been newly issued to investors, usually referring to stocks or bonds that have just been offered to the public or private investors.

Electronic Trading Systems

Platforms that facilitate the trading of financial securities, commodities, and other assets using electronic networks and computers.