Understanding Business
Understanding Business
12th Edition
ISBN: 9781259929434
Author: William Nickels
Publisher: McGraw-Hill Education
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Chapter 19, Problem 2VC
Summary Introduction

Case summary: M Company provides helpful and unbiased advisory information related to investment, most of the people choose between stock and bonds. An individual can diversify his risk by buying stocks in different firms or any easy way of it is buying mutual funds. In the long run, advisory company recommends investing in stock as in later years the price of stock goes high. M Company also recommends people to invest in bonds, because in later time period the individual will get the amount plus interest. Investing opportunities and knowledge can be obtained not only from Company M, but also from other sources like newspaper, textbooks, magazines and many more.

Characters in the case: The character in the case is Company M.

Adequate information:

M Company provides unbiased advisory services which helps to make investment decision to the firms. It recommends people in investing in two of the options that are stocks and bonds.

To determine:

Whether an individual should rely completely on M Company or look for other sources of advice.

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