A Financial Planner Would Encourage You to Borrow Money

question 10

Multiple Choice

A financial planner would encourage you to borrow money

• A) only to buy assets that are likely to generate income or increase in value.
• B) to pay your day-to-day expenses and then to invest your income.
• C) only when facing bankruptcy.
• D) in order to reduce your debt level.

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Definitions:

Commissions Earned

Income received by salespersons, brokers, or agents based on sales or transactions completed.

Deferred Gross Profit

The portion of profit resulting from sales made on installment that is not recognized immediately but deferred to future periods.

Gross Profit

The difference between the revenue generated from sales and the cost of goods sold, indicating the basic profitability of a company's products or services.