Why Do the Disciplines of Psychology and Sociology Have a Role

question 3

Multiple Choice

Why do the disciplines of psychology and sociology have a role in the practice of personal financial planning?

• A)They provide logical,rather than emotional,explanations for how people act.
• B)They provide behavioral,rather than logical,explanations for how people act.
• C)They explain how people should act.
• D)They help us understand how people and households allocate scarce resources.
• E)They provide therapies that can reduce the anxiety faced by clients.

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Definitions:

Net Assets

The total assets of an entity minus its total liabilities, representing the owners' equity in the company.

Parent Company

A company that holds a controlling interest in one or more other companies, referred to as subsidiaries, allowing it to control their operations and policies.

Investment Date

The specific date on which an investment is made or acquired by an investor, marking the commencement of recognition in financial statements.

Acquisition Date

The effective date on which control of a business or asset is obtained by the acquirer.