Back-End Loads

question 48

Multiple Choice

Back-end loads

• A) are charged when an investor buys their mutual fund shares.
• B) are charged if an investor sells his or her shares within the first few years.
• C) were designed to help no-load funds cover their marketing expenses.
• D) encourage short-term trading.

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Definitions:

Operating Segments

Elements of a corporation for which distinct financial data is obtainable, which the chief operating decision maker reviews routinely to determine resource allocation and to evaluate performance.

Reporting Tests

Procedures or checks utilized to ensure financial information is accurate, complete, and in compliance with regulations.

Quantitative Thresholds

Fixed numerical limits or criteria used to trigger certain actions or classify objects in financial and statistical contexts.

Operating Segments

Operating segments are components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision-maker in deciding how to allocate resources and in assessing performance.