Solved

Read the Paragraph Below and Answer the Questions That Follow

question 27

Multiple Choice

Read the paragraph below and answer the questions that follow.
(1) Learning to make a budget is the key to managing your hard-earned money. (2) First, select your budget period, usually a week or a month. (3) Second, estimate your income for that time period as accurately as you can. (4) Include not only your salary after payroll deductions, but the least you expect to make from other sources, such as tips, bonuses, and commissions. (5) Third, add up all your expenses for the budget period. (6) Be sure to add in your fixed costs ⎯ like rent, utilities, tuition, and taxes ⎯ as well as savings. (7) Also include your variable expenses. (8) The most difficult ones to estimate, variable expenses include all your nonfixed living costs, from money for food and transportation to planned events like vacations and less predictable ones like medical and home repair bills. (9) Fourth, subtract your expenses from your income to see whether you need to adjust your budget. (10) If your expenses are greater than your income, look for ways to cut costs ⎯ for example, on clothing. (11) If your income is greater than your expenses, you have the luxury of splurging or saving extra money for that car or trip you have always wanted. Which of the following sentences in the paragraph does NOT contain a transitional expression that indicates time?

Definitions:

Watered Stock

Stock that is issued to individuals below its fair market value.

Majority Vote

A voting outcome that is achieved when more than half of the votes cast are in favor of a proposition or electing a candidate.

Rules of Agency

Legal guidelines governing the relationship between an agent, who acts on behalf of another person or entity (the principal), and the principal itself.

Shareholders

Individuals or entities that own shares in a corporation, giving them rights to dividends and a stake in the company's equity.