Module 3 Financial Planning

Front

Which item should be placed in the liabilities section on a company balance sheet? Options: cash, buildings, inventory, employee wages

Back

employee wages

Front

Which individual does in-depth work on formulating investment strategies for clients, helping them fulfill their needs, and reaching their financial goals?

Back

financial consultant

Front

Which person will analyze, interpret, and process a wide variety of transactions, and be aware of their impact to assets on behalf of a beneficiary? Options: financial planner, investment banker, trust operations specialist, securities operations specialist

Back

trust operations specialist

Front

Which is a poor way to find companies in which to invest? Options: Read reputable investment magazines and newspapers, Discuss investment opportunities with family and friends., Follow suggestions in unsolicited e-mails and phone calls., Investigate businesses that have interesting products and services.

Back

Follow suggestions in unsolicited e-mails and phone calls.

Front

An individual who often works as part of a financial institution and is primarily concerned with raising capital for corporations, governments, or other entities is called a/an:

Back

investment banker.

Front

Which statement is false about using a buy-and-hold strategy? Assets need only passive management., Stocks must be carefully monitored., There are tax benefits for this method., Price fluctuations can be ignored.

Back

Stocks must be carefully monitored.

Front

Which is an important business factor to consider when choosing an investment? Options: time horizon, risk tolerance, minimization of taxes, comparison to competition

Back

comparison to competition

Front

Which best describes a marketable bond? Options: one that is bought and sold in the open market, one that later becomes a stock at a market, one that comes from a governing body, one that is paid back before maturity

Back

one that is bought and sold in the open market

Front

Too much diversification in a financial portfolio can:

Back

dilute the value of big gains on an individual stock.

Front

Which statement is true about assessing the fundamentals of a security? Options: Fundamental analysis results in a reliable prediction of the stock price for the next year., Fundamental analysis is a complicated procedure that is inappropriate for beginning investors, Even investment experts disagree about the most important ratios to consider in fundamental analysis., The only valid approach to fundamental analysis is based on the work of investment guru Warren Buffett.

Back

Even investment experts disagree about the most important ratios to consider in fundamental analysis.