The Advantage of a "Buy and Hold Strategy" Is That

question 40

Multiple Choice

The advantage of a "buy and hold strategy" is that

• A) net profits will tend to be higher because there will be fewer brokerage commissions.
• B) losses will eventually be eliminated.
• C) the longer a stock is held, the higher its price will be.
• D) only B and C of the above are true.

Comprehend the legal position of parties in transactions involving authority or lack thereof.

Identify and explain an agent's fiduciary duties and the implications of breaching these duties.

Understand the legal frameworks governing partnerships, including the establishment, liability, and operation.

Distinguish between different business entities (sole proprietorship, partnership, and corporation) regarding structure and liability.

---

Definitions:

Initial Inventory

The amount of stock a company has on hand at the beginning of a financial or inventory period.

Regular Time Cost

The cost associated with normal operating hours or work performed during standard working times, excluding overtime or premium pay rates.

Varying Inventory Levels

Adjusting the amount of stock on hand to meet changing demand conditions or to maximize operational efficiency.