Contingent Deferred Sales Loads Generally

question 135

Multiple Choice

Contingent deferred sales loads generally:

• A) apply until the shares you own are in the fund for 10 years or more.
• B) apply regardless of how long your shares have been invested.
• C) increase as the length of time you have been in the fund increases.
• D) decline gradually until there is no withdrawal fee.
• E) apply only for the first year funds are invested.

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Definitions:

C-corp

A corporation in the United States that is taxed separately from its owners, known as shareholders, under the subchapter C of the Internal Revenue Code.

S-corp

A specific designation for a corporation that allows income, losses, deductions, and credits to be passed through to shareholders for federal tax purposes, avoiding double taxation.

Double Taxation

The financial imposition where income taxes are paid twice on the same source of earned income, often in the context of corporate profits taxed both at the corporate level and again when distributed as dividends.

Independent Contractors

Workers who provide services to a business under terms specified in a contract, rather than as employees.