Informal Budgeting Involves

question 16

Multiple Choice

Informal budgeting involves:

• A)Less detailed ways of planning.
• B)Listing expenses but not sources of revenues.
• C)Listing expenses but not sources of revenues
• D)Creating a detailed household budget that is not shown to the client.
• E)None of the above.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members. It is the portion of corporate profits paid out to stockholders.

Surplus

The amount by which revenue exceeds expenses in a given period, indicating a positive financial state.

Share Option

A right granted by a company to its employees or executives to purchase shares in the company at a preset price, often used as part of compensation packages.

Exercise Price

The specified price at which an option holder can buy (call) or sell (put) the underlying security or commodity.