The companies that collect funds from companies and individuals and invest in portfolios of assets are classified as ____________?
Correct answer: B. mutual funds
- A. activity funds
- B. mutual funds
- C. penalty funds
- D. financing fundsBanking
Explanation
Mutual funds pool money from individuals and companies, then invest it in a diversified portfolio of securities or other assets. The other choices are not standard names for this type of investment institution.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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