Even Though Veronica Has Not Performed Well as a Sales

question 67

Multiple Choice

Even though Veronica has not performed well as a sales associate,she got excellent ratings on her performance appraisal because one week before she was evaluated,she made a $35,000 sale to the city water department.This is an example of the _____.

• A) excessive severity
• B) opportunity bias
• C) pitchfork effect
• D) halo effect
• E) recency bias

Know the stakeholders in corporate governance and their roles.

Understand the concept and importance of asset allocation in funds.

Identify the characteristics and management fees of various investment tools, including mutual funds and exchange-traded funds (ETFs).

Recognize the tax implications and regulatory requirements for mutual funds.

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Definitions:

Debt/Equity Ratio

The indicator that compares the role of debt and equity in financing company assets.

Financial Leverage

The use of borrowed money to increase the potential return of an investment, which also increases the risk of loss.

M&M Proposition

The Modigliani-Miller Proposition argues that in an ideal market, the value of a firm is unaffected by how it is financed, whether through debt or equity.