A Mutual Fund

question 67

Multiple Choice

A mutual fund:

• A) is a way of investing in a single stock.
• B) pools the money of many investors-its shareholders-to invest in a variety of securities.
• C) is insured by the FDIC.
• D) is a form of an indirect real estate investment.
• E) is professionally managed so investors need not monitor fund results.

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Definitions:

External Events

Occurrences outside an organization that might impact its operations, strategy, or performance, such as economic changes, natural disasters, or regulatory shifts.

McGregor's Theory Y

A management theory that suggests employees are inherently motivated and will fulfill their work and responsibilities without coercion if provided with the right conditions.

Lower-order Needs

Basic human necessities in Maslow's hierarchy of needs, such as physiological and safety needs, which are fundamental for survival and security.

High Need

Refers to a critical requirement or an urgent desire that motivates individuals' behaviors or actions towards its fulfillment.