1. Investment Companies (LO2, CFA3) Which of the following statements typically does not characterize the structure of an investment company?

a. An investment company adopts a corporate form of organization.

b. An investment company invests a pool of funds belonging to many investors in a portfolio of individual investments.

c. An investment company receives an annual management fee ranging from 3 to 5 percent of the total value of the fund.

d. The board of directors of an investment company hires a separate investment management company to manage the portfolio of securities and handle other administrative duties.