A Good Way to Approach Your Financial Goals Is by Dividing

question 75

Multiple Choice

A good way to approach your financial goals is by dividing them into three time frames:

• A)short-term (less than 2 years),intermediate?term (2-5 years),and long?term (more than 5 years).
• B)short-run (within the next 12 months),moderate (1-2 years),and long-run (more than 2 years).
• C)one-year,two-year,three or more years.
• D)moderate,intermediary,long-term.

Recognize the audiences for business plans and their expectations.

Identify and evaluate the elements crucial for the success of business plans in competitive environments.

Understand the relationship between business planning and organizational goals.

Grasp the importance of detail in financial projections within business plans.

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Definitions:

Dividends

Dividends are payments made by a corporation to its shareholder members, representing a portion of the corporate profits distributed.

Dividend-payout Ratio

The percentage of net income paid to shareholders in the form of dividends.

Share Price

The price of a single share of a number of saleable stocks of a company, derivative, or other financial asset.

Plowback Ratio

Plowback Ratio, also known as the retention ratio, is the proportion of earnings that a company retains and reinvests in its operations, rather than distributing as dividends.