1) Nigel is self-employed. He seeks funding to expand his business operations.

What must Nigel do in order to sell shares in the business to raise funds?

• a.) Convert the business from a public company to a private enterprise
• b.) Convert the business into a corporation
• c.) Obtain a business loan for the amount of the shares
• d.) Sell bonds in the business for the same amount as the business's shares

2) Eileen is deciding between investing in stocks and bonds.

Which of the following would indicate that Eileen should invest more in bonds than in stocks?

• a.) She wants to grow her wealth quickly.
• b.) She wants an investment that is unaffected by inflation.
• c.) She has low risk tolerance and prefers steady returns.
• d.) Dividends paid on stocks are tax exempt for investors.

3) Why is investing in mutual funds a productive financial decision for its investors?

• a.) Individuals do not pay brokerage fees, which increases the earning potential from their investments.
• b.) It provides individuals with limited funding the opportunity to invest in different types of investments.
• c.) Investors get premium returns on their investments as they are solely responsible for all the investment decisions.
• d.) It is a type of investment that has a slow growth rate but guarantees high returns with zero losses.