Who Accepts All of the Risk Associated with a Mutual

question 23

Multiple Choice

Who accepts all of the risk associated with a mutual fund's portfolio of stocks and/or bonds?

• A)the fund's managers
• B)the fund's shareholders
• C)the federal government
• D)the corporations that originally issued the stocks and/or bonds held by the fund

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Definitions:

Internal Control

Methods and systems put in place by an organization to guarantee the accuracy of financial and accounting data, encourage responsibility, and deter dishonest practices.

Voucher System

A method of accounting in which a record is kept for each transaction, detailing the necessary approvals and documentation.

Source Documents

Original records that provide evidence of financial transactions, such as receipts, invoices, or bank statements.