One Aspect of Financial Planning Is to Make Sure You

question 55

Multiple Choice

One aspect of financial planning is to make sure you maintain adequate insurance coverage for your needs.Which component of financial planning does this deal with?

• A)Borrowing
• B)Spending
• C)Managing risk
• D)Investing
• E)Retirement and estate planning

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Definitions:

Unrealized Gain

An increase in the value of an asset or investment that has not yet been sold and thus, the gain has not been realized as actual profit.

Consolidated Financial Statements

Financial statements that show the financial results and position of a parent company and its subsidiaries as if they were a single entity.

Wholly Owned Subsidiary

A firm entirely possessed by another corporation, known as the parent company, holding all of its share capital.

Non-Controlling Interest

A ownership stake in a corporation where the holding gives the investor less than 50% voting power.