Which of the Following Is Not One of the Considerations

question 40

Multiple Choice

Which of the following is not one of the considerations in setting investment objectives?

• A)Risk versus safety of principal
• B)Maximize wealth versus minimize expenses
• C)Current income versus capital appreciation
• D)Short-term versus long-term orientation
• E)Taxes

---

Definitions:

Administrative Expense

Costs related to the general administration of a business, including salaries of senior executives, costs of general services, and office supplies among others.

Raw Materials Purchases

The total amount spent on buying raw materials that are needed for the production process, a crucial component of manufacturing and production budgeting.

Master Budget

A comprehensive financial plan used by an organization that includes all financial statements and operating budgets for a specific period.

Credit Sales

Sales made on credit, where the customer purchases goods or services with an agreement to pay at a later date.