If a household invests in corporate securities and does not supervise how the funds are invested or used by the corporation, the risk of not earning the desired return or not having the funds returned increase.

Question

Quizplus · Accepted Answer

If the household does not supervise how the funds are invested or used by the corporation, they have no control over the decisions made by the corporation and are therefore exposed to the risk of not earning the desired return or not having the funds returned.

If a Household Invests in Corporate Securities and Does Not