Which One of the Following Statements Regarding Open-End Mutual Funds

question 62

Multiple Choice

Which one of the following statements regarding open-end mutual funds is false

• A)The funds redeem shares at net asset value.
• B)The funds offer investors professional management.
• C)The funds offer investors a guaranteed rate of return.
• D)The funds offer investors professional management and a guaranteed rate of return.
• E)The funds redeem shares at net asset value and offer investors professional management.

Understand the concept of differential revenue and cost in financial decision-making.

Comprehend the definitions and applications of sunk cost and opportunity cost.

Recognize the legal and ethical considerations in pricing, including the Robinson-Patman Act.

Identify the relevance of costs in make-or-buy decisions, further processing decisions, and special pricing strategies.

---

Definitions:

Considerations

Factors or aspects that need to be taken into account before making a decision or evaluation.

Substitute Items

Products or services that can replace or serve as alternatives to another, meeting the same needs or fulfilling the same functions.

Perceived Benefits

The advantages or positive outcomes that consumers believe they will gain from purchasing and using a product or service.

Decreasing Cost

A situation in which a company experiences a reduction in the cost per unit as the level of production increases, often due to economies of scale.