Which of the following accurately describe reasons for investing in mutual funds?

I. to effectively control the timing of capital gains for tax purposes
II. to achieve portfolio diversification at a reasonable cost
III. to invest in unfamiliar sectors or geographic regions
IV. to outperform the market

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


Answer: B

Business

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The following budget information is available for Crescent Company for January Year 2: Sales$800,000 Cost of goods sold 540,000 Utilities expense 2,500 Administrative salaries 100,000 Sales commissions 5% of SalesAdvertising 20,000 Depreciation on store equipment 50,000 Rent on administration building 60,000 Miscellaneous administrative expenses 10,000 Percentage of sales on credit 80% All operating expenses are paid in cash in the month incurred. The amount of expected cash outflow for selling and administrative expenses would be:

A. $232,500. B. $247,500. C. $312,500. D. $262,500.

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A) properly constructed sentence B) dangler C) misplaced part D) comma splice E) fragment

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Credit entries are used to:

A) increase asset accounts. B) increase liability accounts. C) increase expense accounts. D) increase dividends.

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A firm's profit potential and control over marketing activities increases as it moves from exporting to direct investment as a global market-entry strategy. But so does the firm's

A. likelihood of long-term success. B. financial commitment and risk. C. need for a larger workforce. D. vulnerability to political changes and doctrines. E. need for a more educated workforce.

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