Which of the Following Statements About a Not-For-Profit Firm's Fund

question 9

Multiple Choice

Which of the following statements about a not-for-profit firm's fund capital is most correct?

• A) the sole source of fund capital is the excess of revenues over expenses.
• B) fund capital has a zero opportunity cost.
• C) fund capital can only come from donations.
• D) fund capital does not change over time.
• E) fund capital is equivalent to equity capital in investor-owned firms.

Understand the structure and function of exchange-traded funds (ETFs) and how they compare to mutual funds.

Identify the fees associated with mutual fund investments, including management fees, load fees, and 12b-1 fees.

Calculate the impact of fees on mutual fund investments and understand the concept of load and no-load funds.

Recognize the benefits of mutual funds in retirement accounts and the ability to switch investments in a family of funds concept.

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Definitions:

Product Leader

A person or company that leads in the development, innovation, and marketing of new or existing products, often setting standards or trends in their industry.

Purchasing Agents

Individuals within an organization who are responsible for negotiating, acquiring, and managing the purchase of goods and services.

Buying Center

The group of people within an organization who are involved in a purchase decision.

Gatekeeper

An individual or entity that controls access to something, often information or resources.