Final answer:
The statement is FALSE, as asset management involves broader objectives than serving the needs of income beneficiaries, aiming to maximize return for all stakeholders. Examples include mutual funds, which offer liquidity, professional management, and diversification, and strategic business investments for future profits.
Step-by-step explanation:
The statement that asset management encompasses the selection, purchase, sale, and administration of account assets to meet just the needs of the income beneficiaries is FALSE. Asset management does indeed involve the careful selection, purchase, sale, and ongoing management of assets, but its objectives are broader than just serving the income beneficiaries.
Good asset management aims to maximize overall value and return for all stakeholders, which might include growth and capital gains, in addition to generating income.
Mutual funds, as an example of asset management, offer benefits such as liquidity, professional management, and diversified portfolios. These attributes ease the process for investors, particularly those without the time or expertise to manage their investments.
They also provide a mix of assets which helps mitigate risk, although there can be associated costs. In contrast, strategic business decisions such as investing in long-term assets like machinery or research and development are also part of broader investment strategies that may be a component of asset management. These decisions are focused on generating future profits rather than immediate income for beneficiaries.