Jack recently received a considerable sum of money by selling his property. He decides to invest this sum in a diversified set of securities. He plans to retain these securities for a long time until they have appreciated. Jack is using the _____ investment strategy.
A) market timing
B) investing for growth
C) value investing
D) buying and holding
Question 2 - A main disadvantage of a small business is that employees and customers usually develop too close of a relationship.
Indicate whether the statement is true or false
Question 3 - Of the following, only ___ would not be considered proper financial management during both good and bad times.
A) investing excess cash in CDs, government securities, or conservative securities
B) making sure that funds are available to meet tax deadlines
C) paying bills promptly
D) investing all excess cash in long-term securities
E) planning for sufficient financing when needed
Question 4 - Employers receive benefits from enriching employee's jobs. In one form of job enrichment, the employee is able to work from his or her home all or part of the work week thus permitting the employer to benefit from attaining designated goals while saving on real estate and travel expenses, and being able to access a larger labor pool. This form of job enrichment is known as
A) telecommuting.
B) job-sharing.
C) part-time employment.
D) job redesign.
Question 5 - The objective of the market timing strategy is to:
A) predict changes in stock prices in order to earn a quick profit by buying low and selling high.
B) minimize risk by getting completely out of the stock market when stock prices fall and investing heavily once prices begin to rise.
C) quickly identify new companies with long-term growth potential and buy their stock before other investors notice them.
D) hold a diversified portfolio of stocks for a long period of time in order to take advantage of the long-run upward trend in the stock market.
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