Financial Literacy-Ch11

The business format taught by the franchisor includes

A tax-deferred retirement plan for self-employed individuals

In a business format franchise

Tax-deferred retirement plan for employees of schools, government units, and nonprofits

Choosing a combination of funds within a single mutual fund company

Owning a franchise can be like buying a business with built-in customers is known as

Moving a retirement account balance to another qualified account w/o incurring a tax penalty

Which is not an advantage of owning a franchise?

The fixed rate of interest that is paid semiannually for the life of the corporate bond

In a product distribution franchise

A contract that gives you the right to sell a company’s products and services

A bond that can be exchanged for shares of common stock at the option of the bondholder

An individual retirement account in which contributions are taxed, but earnings are not

A type of stock that pays a variable dividend and gives owners (stockholders) voting rights

A tax-deferred retirement plan for employees offered by businesses that operate for a profit

Direct real estate investing-legal title to a property& has control over management decisions

A professionally managed group of investments bought using a pool of money from many investors

When it is not convertible to cash quickly or without penalty

Tells the investor the risk category that has been assigned to a bond

A fee imposed to discourage depositors from withdrawing the money before the stated time period

Individual retirement account in which contributions are tax-deductible and grow tax-deferred

A bond with a clause that allows the issuer to repay the bond before the maturity date

A bond that sells for more than its face value

A type of stock that guarantees a fixed dividend but does not provide voting rights