Open End Mutual Funds May Charge Which of the Following

question 69

Multiple Choice

Open end mutual funds may charge which of the following fees?
I. A front-end load at the time of purchase.
II. A back-end load when shares are sold.
III. Annual fees based on marketing and distribution costs.
IV. Annual performance fees up to 20% of increases in net asset value.

• A) I, II and IV only
• B) I, II, and III only
• C) I, III and IV only
• D) I, II, III and IV

---

Definitions:

Strategy Development

Strategy development involves formulating plans and policies to achieve major business goals and objectives, taking into consideration the resources available and the external environment.

Resource-Based View

A framework for understanding competitive advantage that emphasizes the strategic value of a firm's resources and capabilities.

Competitive Advantages

The attributes that allow an organization to outperform its competitors, including cost structure, product offerings, brand, and customer service.

Sustainable Competitive Advantage

A long-term, defendable position a company holds over competitors, often through unique resources, capabilities, or technologies.