Which of the Following Statements Best Describes the Legal Organization

question 49

Multiple Choice

Which of the following statements best describes the legal organization of mutual funds?

• A) funds are organized as a single entity that handles all functions such as custody and investment decisions.
• B) funds split their basic functions such as record keeping and investment decisions among two or more companies.
• C) funds are owned by the company that manages them.
• D) a distributor keeps track of investment and redemption requests from shareholders and maintains other shareholder records.

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Definitions:

Direct Labor-Hours

The cumulative hours employees directly participating in the production process have worked.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost of materials.

Variable Manufacturing Overhead

Costs that vary in total in direct proportion to changes in the volume of production, such as indirect materials and utility costs directly tied to production.

Raw Materials

The basic materials from which a product is made, prior to any processing or manufacturing.