To Operate as a Regulated Investment Company and Enjoy the Related

question 72

Multiple Choice

To operate as a regulated investment company and enjoy the related tax benefits, a mutual fund must annually distribute to its shareholders

• A) half of its realized capital gains, and interest and dividend income.
• B) none of its realized capital gains, but all of its interest and dividend income.
• C) all of its realized capital gains, and at least 90 percent of its interest and dividend income.
• D) all of its realized capital gains and interest and dividend income.

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Definitions:

Inventory Available

The total quantity of goods a company has on hand for sale at any given time, including both finished goods and goods in production.

Current Asset

Assets that are expected to be converted into cash, sold, or consumed within one year or within the company’s normal operating cycle if longer.

Plant and Equipment

Plant and Equipment are long-term assets used in the operation of a business, not intended for resale, including machinery, buildings, and vehicles.

Long-Term Liabilities

Obligations that are not due or payable for a long time, usually for more than a year.