Which of the Following Statements Is True Regarding the Steps

question 60

Multiple Choice

Which of the following statements is true regarding the steps for effective investment planning?

• A)When establishing an investment program,you should begin by monitoring your investments.
• B)When you are choosing an investment,you should examine only the interest rate risk factor associated with each investment.
• C)When establishing an investment program,you should examine the potential return for all investments.
• D)Leave the financial planning to the professionals.
• E)There is no need to monitor your investments after you have made your investment decision.

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Definitions:

Corporate Affairs

Activities and responsibilities related to the operation and management of a corporation, including compliance, governance, and public relations.

Limited Partner

One who invests in a limited partnership but does not play an active role in managing the business. Unlike general partners, limited partners are only liable for partnership debts up to the amounts they have invested.

Management Participation

Involvement or active engagement of management in the strategic and operational tasks of an organization or a particular project.

Voluntary Contract

An agreement entered into freely by parties who are capable of making their own choices and decisions, without coercion.