A Problem with Mutual Funds Is

question 23

Multiple Choice

A problem with mutual funds is

• A) Professional management.
• B) The possibility to eliminate taxes if held in a Roth individual retirement account.
• C) Being required to report reinvested income dividends and capital gain distributions on your federal tax return.
• D) Tax deferral if the fund is held in a retirement account like a 401(k) account.
• E) The diversification offered to investors.

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Definitions:

High Power Distance Cultures

Societies or organizations where there is a significant acceptance of unequal distribution of power, authority, and wealth among individuals.

Managerial Hierarchy

The arrangement of individuals within an organization according to levels of managerial authority, from the lowest to the highest positions.

Topping Out

A construction milestone celebrated when the last beam or structural element is placed atop a structure during its erection.

Skill-Based Pay

A compensation strategy that assigns wages based on the skills, knowledge and experience possessed by an employee, as opposed to job title or rank.