A Mutual Fund Which Attempts to Hold Quantities of Shares

question 22

Multiple Choice

A mutual fund which attempts to hold quantities of shares in proportion to their representation in the market is called a __________ fund.

• A) stock
• B) index
• C) hedge
• D) money market

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Definitions:

Consolidation Adjusting Entries

Journal entries made in the process of preparing consolidated financial statements to eliminate intercompany transactions and balances.

Group Profit

is the total earnings of a conglomerate, calculated after all expenses and taxes, resulting from the operations of all its subsidiaries.

Retained Earnings

The portion of net earnings not paid out as dividends, but retained by the company to be reinvested in its core business or to pay debt.

Non-controlling Interest Share

The portion of equity interest in a subsidiary not owned by the parent company, reflecting the minority shareholders' stake in the consolidated entity.