The mutual fund industry is beginning to use the Internet to disseminate fund information and effect fund transactions. The Internet also makes it much easier for savers to obtain information about individual securities and much cheaper to trade these
securities. As the Internet develops, will savers make their investment directly in individual securities rather through financial intermediaries such as mutual funds?
The Internet probably will cause some savers to invest directly in individual securities rather than in mutual funds, though it likely will have limited impact on other savers. Since the Internet makes investing in individual securities easier and less expensive, some may allocate a percentage of their investments to individual securities, while others may increase the percentage of assets allocated to individual securities. These factors seemed to have contributed to the popularity of online trading during the late 1990's, along with the sharp run-ups in the prices of dot com stocks. However, convenience and trading costs are only two of the factors relevant to the choice between mutual funds and individual securities. Other factors include risk diversification and investment expertise. After the huge price declines in most dot com stocks, the volume of online trading dropped substantially as many investors realized the importance of other factors such as diversification and expertise.
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An agreement between retailers that are in direct competition with each other to set the same prices is called
A. MSRP pricing. B. price elasticity. C. predatory pricing. D. horizontal price fixing. E. vertical price fixing.
Which of the following is a reason that marketing to Hispanics has proven to be a challenge?
A. Hispanics prefer imports to American-made products; they tend to be ethnocentric in their product preferences. B. The Hispanic subculture is diverse. C. Hispanics don't consider advertising a credible source of product information. D. Assimilation is valued and the Hispanic community finds cultural target marketing offensive. E. Hispanics communities are spread across the entire country and therefore difficult to target.
Developing a Professional Profile An increasing number of job applicants are developing an electronic portfolio that is posted to the applicant's personal website. Austin McClain is a recent graduate with an M.P.A. degree in accounting. He needs to
write a professional profile for his electronic portfolio that highlights his accomplishments that include the following: Austin wants a job working with a large international accounting firm as part of a first-year audit staff. He actually has auditing experience resulting from a summer internship with a Dallas accounting firm. He knows how to work with ERP systems, ACL, database, and spreadsheet software. Austin has developed a fluency in Spanish which will be advantageous for working with international clients. As a student, he has been active in Beta Alpha Psy, the honorary accounting society, and several other organizations, where he held leadership positions. He has developed strong skills in writing and speaking. Required: Write a professional profile for Austin McClain suitable for posting to his electronic portfolio.
Dillon's boss criticizes him again with the statement, "I think my 12-year-old niece would do a better job updating our site." To best resolve the conflict, what response should Dillon make?
A) "I want to improve our Web site. In what specific way would your niece do a better job?" B) "Back off please. Bullying a subordinate is a human rights violation." C) "I doubt it. I once met your niece at a company picnic, and she gave me the impression of being a little dull." D) "You may be the boss. But one more insult and I quit."