A "Good" Fund Manager Has the Ability to Increase the Share

question 37

True/False

A "good" fund manager has the ability to increase the share value when the economy is good and retain that value when the economy is bad.

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Definitions:

Fixed Costs

Fixed costs, including rent, wages, and insurance expenses, stay the same no matter the production or sales volume.

Debt

An amount of money borrowed by one party from another, to be paid back with interest.

Shareholder Value

The worth delivered to shareholders due to management's ability to grow sales, earnings, and dividends over time.

Business Costs

All expenses incurred in the operation of a business, including manufacturing, marketing, and administrative expenses.