Which of the Following Functions Do Investment Companies Perform for Their

question 70

Multiple Choice

Which of the following functions do investment companies perform for their investors?

• A) Record keeping and administration
• B) Diversification and divisibility
• C) Professional management
• D) Lower transaction costs
• E) All of the options.

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Definitions:

Limited Partners

Investors in a limited partnership who contribute capital but have limited liabilities and are not involved in day-to-day management of the business.

Dissolve

To dissolve is to officially end the existence of an entity or agreement, such as dissolving a corporation or dissolving a marriage through divorce.

Bankruptcy

A judicial process that enables individuals or businesses struggling to fulfill their financial commitments to obtain relief from part or all of their debts.

LLC Member

An individual or entity that owns a part of a Limited Liability Company and has certain rights and responsibilities as outlined in the LLC's operating agreement.