Which of the Following Is a True Statement

question 53

Multiple Choice

Which of the following is a true statement?

• A) The first order of business for an investor is acquiring the money needed to begin investing.
• B) To be useful, investment objectives must be very general.
• C) Investment goals are the same for each individual.
• D) Because investment objectives deal with the future, it is useless to plan more than five years in the future.
• E) A long-term investment objective involves a time period of five years or less.

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Definitions:

UCC

Stands for Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Adjusted Cost

The net cost of an asset after adjustments for various factors such as depreciation or amortization.

Realized Capital Gains

The increase in value of an investment, when converted to cash.

Taxable Difference

The amount by which taxable income exceeds tax deductions in a given period, impacting the amount of tax owed.