Which of the Following Statements Is False

question 65

Multiple Choice

Which of the following statements is false?

• A)The purpose of investing in a closed-end or open-end mutual fund is to earn a financial return.
• B)Income dividends are the earnings that a fund pays to shareholders after it has deducted expenses from its dividend and interest income.
• C)Capital gain distributions are the payments made to a fund's shareholders that result from the sale of securities in the fund's portfolio.
• D)It is possible to make money on a mutual fund by purchasing shares at a high price and then selling them at a low price at a later date.
• E)Real estate funds aim for long term growth

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Definitions:

Partnership

A legal business relationship between two or more individuals who share management and profits or losses of the business.

Schedule E

A financial document utilized for declaring earnings and deficits from sources such as rental real estate, royalties, partnership entities, S corporations, estates, and trusts.

Capital Improvement

An addition or renovation to a property that increases its value, typically beyond ordinary repairs.

Repair and Maintenance

Expenses for fixing and maintaining assets to keep them in good working condition, often deductible for tax purposes.