MENU
The board of directors of a mutual fund is responsible for:
i. authorizing purchases and sales of securities made by the fund.
ii. approving the fund's contract with its investment adviser.
iii. ensuring that the fund complies with federal securities laws regarding such issues as 12b -1 fees.
IV. establishing the fund's dividend and capital gains policy.
Suggested Answer: B
Get Premium Series-6 Questions
as Interactive Web-Based Practice Test or PDF
Real Exam Format
Detailed Explanations
Instant Access
Get Your Practice Test
The true statement is that reinvested dividends and capital gain distributions count toward reaching a breakpoint under the rights of accumulation. The rights of accumulation are not something that all mutual funds with front-end loads must offer. There is no time limit on the accumulation period. The rights of accumulation and the letter of intent are two separate animals; neither has anything to do with the other.
33 comments · newest first
JO
Jovita
12 months ago
Seems like a lot of responsibility for one board!
YV
Yvonne
1 year ago
I think it's just I, II, and IV.
KI
Kiera
1 year ago
Wait, are they really responsible for 12b-1 fees?
HE
Helaine
1 year ago
Totally agree, they need to oversee everything.
SU
Suzan
1 year ago
The board does all those things!
JO
Jolanda
1 year ago
I feel like the answer might be D since it covers everything, but I’m a bit uncertain about the specifics of the dividend policy.
BU
Buddy
1 year ago
I practiced a similar question where the focus was on compliance and contracts, but I can't recall if they also authorize purchases.
CH
Chuck
1 year ago
I think the board is responsible for all four points mentioned, especially compliance with federal laws. It seems like a comprehensive role.
FL
Floyd
1 year ago
I remember discussing the board's role in approving contracts with investment advisers, but I'm not sure if they also handle the dividend policy.
CO
Cory
1 year ago
Okay, the question is asking for the command to configure a static route on router R1 to reach the network behind router R2. Let me think this through step-by-step.
TE
Tegan
1 year ago
This is a pretty comprehensive question covering the key elements of the TOGAF 9 Architecture Design and Development Contract. I think I have a good handle on the main components I would need to include.
BA
Basilia
1 year ago
The board of directors? More like the board of 'I've had enough of this mutual fund nonsense!' Amirite? But seriously, D is the way to go. Gotta keep those fund managers on a tight leash.
SA
Samira
1 year ago
Definitely, the board of directors plays a crucial role in overseeing the fund's operations.
JE
Jess
1 year ago
Yeah, D seems like the most comprehensive option. They have a lot on their plate.
TA
Tambra
1 year ago
I agree, D covers all the important responsibilities of the board of directors.
AL
Alline
2 years ago
Hmm, D is the way to go. The board has to keep their hands in everything from trades to fees to dividends. Keeping those mutual fund managers in check, am I right?
CY
Cyndy
1 year ago
It's crucial for the board to have oversight on all aspects of the mutual fund to protect investors.
JO
Johnna
1 year ago
Definitely, they have a lot on their plate to ensure the fund is managed properly.
KR
Kristofer
1 year ago
I agree, D covers all the important responsibilities of the board of directors.
CH
Christoper
2 years ago
I was leaning towards B, but after re-reading the question, D does appear to be the correct choice. Gotta love those comprehensive board duties!
LU
Lucy
2 years ago
Yeah, D seems like the most comprehensive answer. The board has to oversee all the major aspects of the fund's operations.
ER
Eric
2 years ago
The board's responsibilities include authorizing securities transactions, approving the investment advisor contract, and ensuring compliance with regulations. I think option D covers all the key responsibilities.
SA
Sabra
1 year ago
It's important for them to ensure everything is in compliance with regulations.
NA
Nancey
1 year ago
Yes, they play a crucial role in overseeing the fund.
RO
Rosalia
1 year ago
I agree, the board has a lot of important duties.
KR
Kristel
1 year ago
I think option D covers all the key responsibilities.
JI
Jill
1 year ago
It's important for them to ensure compliance with regulations to protect investors.
JA
James
1 year ago
Yes, they play a crucial role in overseeing the fund's operations.
SI
Silva
1 year ago
I agree, the board of directors has a lot of important responsibilities.
LE
Leonora
2 years ago
I think option D covers all the key responsibilities.
ME
Melodie
2 years ago
I'm not sure about that. I think the answer might be B) I, II, and IV only.
ED
Edelmira
2 years ago
I agree with you. The board of directors should be responsible for all those tasks.
VI
Virgina
2 years ago
I think the answer is D) I, II, III, and IV.