You Are Considering Purchasing Shares in a Typical Mutual Fund

question 9

Multiple Choice

You are considering purchasing shares in a typical mutual fund that has three classes of shares outstanding: Class A,Class B,and Class C. If you purchase Class A shares,you will pay

• A)a back-end load and no 12b-1 fees.
• B)a front-end load and a small 12b-1 fee.
• C)no front-end load but a back-end load.
• D)a back-end load and full 12b-1 fees.
• E)a front-end load and full 2b-1 fees.

---

Definitions:

Accrued Liability

A liability that has been incurred, is recognized on the balance sheet, and has not yet been paid.

Deferred Revenues

Deferred revenues are payments received by a company for goods or services that have not yet been delivered or performed, recognized as liabilities on the balance sheet.

Long Term Liabilities

Financial obligations of a company that are due beyond one year, including bonds payable, long-term loans, and lease obligations.

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle of the business.