Reference no: EM133088705
1. Which of the following segments of the financial plan is both a user and provider of cash? Multiple Choice
a. Financial investments.
b. Financial investments and debt.
c. Capital expenditures.
d. Debt.
e. Debt and capital expenditures.
2. Reviews of the financial plan should identify: Multiple Choice
a. All of the choices are correct.
b. None of the choices are correct.
c. Implementation differences.
d. Systematic differences.
e. Cyclical differences.
3. What is the goal of personal financial planning? Multiple Choice
a. To provide the highest standard of living possible for household "member-owners" over their life cycle.
b. To minimize the degree of risk faced by household "member-owners" over their life cycle.
c. All of the choices are correct.
d. To maximize the revenue of household "member-owners" over their life cycle.
e. To minimize the expenses of household "member-owners" over their life cycle.
4. For which of the following operating segments of the financial plan is the function characterized as "job and investments liquidation upon retirement fund household activities"? Multiple Choice
a. None of the choices are correct.
b. Estate planning.
c. Retirement planning.
d. Financial investments.
e. Risk management.
5. Which of the following best describes a theory? Multiple Choice
a. None of the choices are correct.
b. A detailed mathematical model that has little usefulness when making practical decisions.
c. A set of concepts that unifies a body of knowledge and helps you make better decisions in practice.
d. A detailed mathematical model that has significant usefulness when making practical decisions.
e. An untested idea.
6. For which part of the financial plan is "sets planning focus" a key contribution? Multiple Choice
a. Summary of plan recommendations.
b. Statement of goals.
c. Integration.
d. Summary.
e. None of the choices are correct.
7. By which of the following steps in the financial planning process do we ask "Have SWOT, sensitivity and scenario analysis been considered?" Multiple Choice
a. Compiling and analyzing the data.
b. All of the choices are correct.
c. None of the choices are correct.
d. Establishing the scope of the activity.
e. Gathering the data and identifying goals.
8. An ideal financial plan should have: Multiple Choice
a. A summary at the beginning and a mix of written information, numbers through tables, and figures.
b. A summary at the beginning.
c. A mix of written information, numbers through tables, and figures.
d. A summary at the end.
e. All of the choices are correct.
9. For which part of the financial plan is "special requirements of all types for household members" a key contribution? Multiple Choice
a. Educational planning.
b. Other planning.
c. None of the choices are correct.
d. Integration.
e. Employee benefits.
10. For which of the following operating segments of the financial plan is the cash relationship characterized exclusively as an inflow? Multiple Choice
a. Revenues.
b. Revenues and capital expenditures (nonfinancial investments).
c. Capital expenditures (nonfinancial investments) and risk management.
d. Capital expenditures (nonfinancial investments).
e. Risk management