What Is a Load Fund

question 31

Multiple Choice

What is a load fund?

• A) A fund that that does not offer sales commissions to the marketers of the funds.
• B) A fund that provides a sales commission to the individual or brokerage firm that markets the fund.
• C) A fund where the management company does not charge a load that they retain.
• D) Both a and b.
• E) Both b and c.

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Definitions:

Capital Budgeting

The process of evaluating and selecting long-term investments that are in line with the goal of shareholder value maximization, such as new machinery, replacement of machinery, new plants, and research development projects.

Straight-Line Depreciation

An approach for distributing the cost of a physical property over its useful life in uniform annual sums.

Straight-Line Depreciation

A strategy for apportioning the cost of an asset consistently throughout its period of use.

Capital Budgeting

The process of evaluating and selecting long-term investments that are consistent with the firm's goal of value maximization.