An Investor in Mutual Funds Must Also Be Sensitive to the Excessive

question 56

True/False

An investor in mutual funds must also be sensitive to the excessive performance claims that are sometimes made by mutual fund salespeople.

---

Definitions:

Intragroup Transaction

Transactions between companies that are part of the same corporate group, which must be eliminated in the consolidated financial statements.

NCI Adjustment

A modification made to reflect changes in the non-controlling interest's share of equity in a subsidiary.

Tax Rate

The percentage at which an individual or corporation is taxed by the government on their income or assets.

Inventory

The goods and materials a business holds for the purpose of resale or production.