Income Intermediate: Investing for Income

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1.
Companies that make big profits pay big dividends.
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False. Some of them reinvest their profits to finance future growth.
2.
Income investments usually provide income on a steady basis.
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True. Although it is not always guaranteed, income is usually continuous.
3.
You can receive dividends directly from your investment.
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True. Your investment vehicle will send them directly to you after it receives them.
4.
As an investor, you can receive income from your investments in all but which of the following ways?
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Increase in the value of an investment. Strictly speaking, it is only when funds are sent to you that you receive income.
5.
Mutual funds that invest in bonds are income-oriented.
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True. Bonds are income-oriented; they are designed to produce periodic dividend payments.