Which One of the Following Is True

question 3

Multiple Choice

Which one of the following is true?

• A) Professional management and diversification are the important factors for mutual fund investors.
• B) The important factor for mutual funds is a guaranteed income.
• C) The safety aspect of mutual funds guarantees your original investment even if you lose value.
• D) Investors select which stocks they want professionals to manage.
• E) Mutual funds use a professional manager who concentrates on a few stocks.

Acknowledge the historical context of financial systems and regulatory bodies.

Understand the criteria and considerations for something to serve as money.

Understand the concepts and techniques of capital budgeting, including net present value, internal rate of return, and payback period.

Identify and calculate relevant costs, including sunk costs, opportunity costs, and incremental costs in decision-making.

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Definitions:

Freelancer

An individual who works as an independent contractor to provide services to multiple clients, often operating their own small business.

Free Agent

A professional who operates independently, often contracting their services to different organizations rather than being permanently employed by one.

Multiple Employers

Engaging multiple employers refers to a work arrangement where an individual simultaneously holds employment positions with more than one employer, often to diversify income sources or gain varied work experiences.

Flextime

Flexible working hours in which employees customize their own work hours within limits established by management.