Section 5 Study Questions (9.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1. What is credit? (0.5 points) Is a commitment to pay for something in the future, instead of paying for it right away 2.
5. What is a debt settlement program? (0.5 points) It is a program that claim they can get you out of debt by negotiating your debt to a much lower amount 6. What is bankruptcy? (0.5 points) its the inability to pay back your creditors Lesson 3 (3.0 points) 1.
$30.0 FI504 Final Exam Business - General Business 1. (TCO A) An advantage of the corporate form of business is that _____. (Points : 5) it has limited life its owner's personal resources are at stake its ownership is easily transferable via the sale of shares of stock it is simple to establish 2. (TCO A) The Dividends account _____. (Points : 5) is increased with a debit is decreased with a credit is not an expense account All of the above 1.
Trade-off is the form of either buying less or a lesser quality item in order to purchase more or a greater quality item. The various considerations made while calculating time value of money (TVM) include considerations about the amount of investment, the time period required to attain the returns, the total returns and the expected future value of those returns along with the net value of the profit or gain earned out of that investment. The time value of money (TVM) can be used to create a retirement plan as it is possible to use this method to find out the future value of the earnings and then be able to invest accordingly. An approximate estimation about the total amount that a person needs in his retirement would help him save and invest accordingly in the current period as then he can go ahead and find out various retirement plans and the percentage of returns that they are offering as well as the appropriateness of payments and other factors. He can then calculate the future value of the investments and find out if it
The final advantage enjoyed by AMSC is that they can keep the financial flexibility described in Aswath Damodaran’s presentation: The Debt-Equity Trade Off: The Capital Structure Decision. According to the presentation, when a firm borrows up to its capacity, it loses the flexibility of financing future projects with debt. AMSC retained that flexibility by opting for equity financing. With those advantages also come various disadvantages. First, payments on debt interest are tax deductible but payments on equity are not.
Developing short-term and long-term financial goals C. Implementing a plan for achieving goals D. Determining appropriate risk level of participant 8) Preparing personal financial statements is part of which of the five steps of the financial planning process? A. Develop Goals B. Analyze Your Current Financial Position C. Establish and Implement Your Plan D. None of the above 9) Which of the following is an advantage of using a debit card? A. They free customers from carrying cash or checkbooks.
Section 1 Study Questions (9.0 points) Answer each question fully. Complete sentences are not necessary. Lesson 1 (3.0 points) 1. Name at least two things financial planning could help you do. (0.5 points) Help you make goals, manage spending, and organize and keep track of income 2.
2.0 points) Compound interest. While simple interest only pays interest on the amount that was originally invested, compound interest pays interest on the amount invested plus any interest earned. 4. If you were opening a savings account with compound interest, would you prefer an account that offers annual compounding, quarterly compounding, or daily compounding? Why?