Matt Jackson Is Single and 24

question 48

Multiple Choice

Matt Jackson is single and 24. He has just graduated from college and obtained a job making $26,400 a year. Which one of the following investments would you recommend for his long-term investment program?

• A) Corporate bonds
• B) Government bonds
• C) Growth stocks
• D) Commodities
• E) Money-market fund

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Definitions:

Mark-up

The amount added to the cost price of goods to cover overhead and profit.

Eliminate

The process of removing or getting rid of something.

Contribution Margin

The amount remaining from sales revenue after all variable costs have been deducted, indicating how much revenue is contributing to covering fixed costs and generating profit.

Machine Set-ups

The arrangements and adjustments made to machinery to prepare it for a production run.