The Set of Guidelines That Requires Companies to Abide by a Set

question 71

Multiple Choice

The set of guidelines that requires companies to abide by a set of operating standards and to explain why they choose not to refers to ________.

• A)"explain or else"
• B)"comply or explain"
• C)"comply or else"
• D)"comply or resign"

Understand the principles of opportunity cost and specialization in productivity.

Analyze and compute budget constraints based on different types of income and pricing.

Apply the concept of utility maximization to allocate resources effectively between different choices.

Evaluate comparative advantage and how it determines production specialization between individuals or entities.

---

Definitions:

Passive Indexes

Investment funds designed to mimic the composition and performance of a designated market index, thereby minimizing management decisions and costs.

ETFs

Exchange-Traded Funds, investment funds that are traded on stock exchanges, much like stocks, but hold assets such as stocks, commodities, or bonds.

Front-end Load

A fee paid when purchasing shares of a mutual fund or other investment, typically used to cover commission expenses.

Expense Ratio

A measure depicting the percentage of a fund's assets that are used for administrative and other operating expenses, directly affecting investors' returns.