When One Investment Company Manages a Group of Mutual Funds

question 16

Multiple Choice

When one investment company manages a group of mutual funds, it is called a(n) :

• A) family of funds.
• B) exchange fund.
• C) diversification fund.
• D) versatility fund.
• E) asset allocation fund.

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Definitions:

Careful Selection

The meticulous process of choosing the most suitable candidates or options based on specific criteria.

Scientific Management

Scientific Management is a management theory developed by Frederick W. Taylor that analyzes and synthesizes workflows with the main objective of improving economic efficiency, especially labor productivity.

Frederick Taylor

Known as the father of scientific management, Frederick Taylor introduced principles aiming to improve industrial efficiency and productivity through systematic study and analysis of work tasks.

Performance Incentive

A reward system designed to motivate employees to achieve specific performance targets or goals.