Once Ira and Penny Achieved a More Solid Financial Foundation

question 180

Multiple Choice

Once Ira and Penny achieved a more solid financial foundation, they began to consider the purchase of a home. From a financial standpoint, a sound strategy for them to consider would be to

• A) buy a large house in a modest neighborhood.
• B) buy a house in one of the best areas of town, even if they can afford only a relatively small house.
• C) buy a house that will minimize their total real estate taxes.
• D) make sure that their house payments are less than the rent they were paying on their old apartment.

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Definitions:

Financial Defenses

Strategies and measures implemented by individuals, companies, or countries to protect financial assets and income against risks and volatility.

Short-Term Profitability

The ability of a company to generate profits over a brief period, typically less than one year.

Interlocking Directorates

Interlocking directorates occur when members of the board of directors for one company serve on the boards of directors for other companies, potentially leading to conflicts of interest and reduced competition.

Clayton Act

A U.S. antitrust law, passed in 1914, aimed at increasing competition by prohibiting certain actions that lead to anti-competitiveness.