Which of the Following Best Defines a Mutual Fund

question 11

Multiple Choice

Which of the following best defines a mutual fund?

• A)It is a financial market where small firms agree to sell stocks and bonds to raise funds.
• B)It is a fund set aside by a local government to lend to small firms who want to invest in projects that are beneficial to the firm and community.
• C)It is an institution that sells stocks and bonds on behalf of small and less known firms who would otherwise have to pay high interest to obtain credit.
• D)It is an institution that sells shares to the public and uses the proceeds to buy a selection of various types of stocks and bonds.

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Definitions:

Message/Crisis Control

A public relations strategy used to mitigate damage to an organization's reputation during a crisis.

Key Performance Indicator

An assessable figure indicating how well an organization is accomplishing its main objectives.

Risk Mitigation

The process of planning and implementing measures to reduce vulnerability to risks and their impact on a project, business, or operation.

Service Quality

The comparison of perceived expectations with actual service performance, typically used in evaluating customer satisfaction in service industries.