A 12b-1 Fee Is a Hidden Load Because It Increases

question 109

True/False

A 12b-1 fee is a hidden load because it increases a shareholder's earning power each year without being described as a sales commission.

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Definitions:

Income Elasticity

A measure of how the demand for a good or service changes with a change in the consumer's income.

Bagels

A type of bread product originating from the Jewish communities in Poland, known for their dense, chewy texture and hole-in-the-center shape.

Demand Function

An equation that relates the quantity of a good demanded by consumers to its price and other factors like income and prices of related goods.

Income Elasticity

Measures how the demand for a good or service changes relative to a change in consumers' income levels.