Discuss how Vanguard Group's pricing is set up to reward the right kind of customers
What will be an ideal response?
For many of Vanguard's investors, only a one-time upfront fee is charged that goes into the fund to compensate all current investors for the administrative costs of selling new shares. The fee basically subsidizes long-term investors, and penalizes short-term investors. They also created Admiral shares for their loyal investors, which carry an expense fee one-third below ordinary shares. These efforts keep administrative and sales costs to the firm down, which are passed along to their loyal investors.
You might also like to view...
Howard is a partner in the Smithton Partnership with a basis of $20,000. During the current year, the partnership is liquidated, and the partnership distributes cash of $22,000 and property with a basis of $8,000 and a fair market value of $15,000 to each partner. What amount must Howard report as a gain from the liquidation?
A. $-0- B. $2,000 C. $10,000 D. $15,000 E. $17,000
If a company has both an inflow and an outflow of cash related to property, plant, and equipment,
A) the two cash effects can be netted and presented as one item in the investing activities section of the statement of cash flows. B) the cash inflow and the cash outflow should be reported separately in the investing activities section of the statement of cash flows. C) the two cash effects can be netted and presented as one item in the financing activities section of the statement of cash flows. D) the cash inflow and the cash outflow should be reported in the financing activities section of the statement of cash flows.
Some policies that apply equally to members of different races can violate the Civil Rights Act of
1964 because of the overall impact on the different races. Indicate whether the statement is true or false
A market-directed economic system implies that
A. people have political freedom, but economic objectives are determined by the government. B. society lacks both political and economic freedom. C. political freedom and economic freedom go hand in hand. D. very little importance is attached to customer satisfaction. E. the needs of consumers are not part of marketing objectives.