The Mutual Fund, and Not the Investor, Is Responsible for All

question 44

True/False

The mutual fund, and not the investor, is responsible for all income taxes on capital gains and dividends earned by the fund.

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Definitions:

Operating Cash Flow

The cash generated from normal business operations, indicating whether a company is able to generate sufficient cash to maintain or expand operations.

Interest Expense

The cost incurred by an entity for borrowed funds, including loans, bonds, or lines of credit.

Net Income

The remaining profit of a company after all financial obligations and taxes are taken out of its total income.

Net New Equity

The amount of money raised by a company through the issuance of new shares, minus any shares repurchased.