A Benefit Obtained from Comparing Client's Data with Industry Averages

question 78

Multiple Choice

A benefit obtained from comparing client's data with industry averages is that it provides:

• A) a benchmark to be used in evaluating client's budgets.
• B) an indication of the likelihood of financial failure.
• C) a comparison of 'what is' with 'what should be'.
• D) an indication where errors exist in the statements.

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Definitions:

TUx/Px

An economic expression evaluating the marginal rate of substitution, which measures how much of one good a consumer is willing to give up for another good, maintaining a constant level of utility.

Marginal Utility

The extra pleasure or advantage gained from using another unit of a product or service.

Utility

A measure of satisfaction or pleasure that a consumer obtains from consuming goods and services.

Coffee

A brewed drink prepared from roasted coffee beans, the seeds of berries from certain Coffea species, consumed worldwide for its stimulating effects.