Mutual funds may be affiliated with an underwriter. This means____________.
A. the underwriter has an exclusive right to distribute shares
B. the underwriter selects the securities in the portfolio
C. there is no risk to the issuer of the mutual fund
D. there is no risk to the investor of the mutual fund.
Answer: Option A
Solution(By Examveda Team)
Mutual funds may be affiliated with an underwriter. This means the underwriter has an exclusive right to distribute shares. A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature.This Question Belongs to Commerce >> Financial Management
Investment is the _______________.
A. net additions made to the nation’s capital stocks
B. person’s commitment to buy a flat or house
C. employment of funds on assets to earn returns
D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
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