What Are Common Factors Found in an Effective Financial Plan

question 19

Multiple Choice

What are common factors found in an effective financial plan?

• A) Effective financial plans should be flexible to allow for changes in your situation
• B) Effective financial plans should provide sufficient liquidity to meet unexpected needs
• C) Effective financial plans should provide insurance protection from catastrophic events
• D) Effective financial plans should help you minimize paying taxes
• E) All of the above are necessary in an effective financial plan

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Definitions:

Concurrent Control

A management technique that involves monitoring and adjusting operations and processes as they happen in real-time.

Operant Conditioning

A training technique that changes how strong a behavior is by using incentives or consequences.

Behaviour Modification

Behaviour Modification is a psychological strategy that seeks to change or shape an individual's behavior through reinforcement, punishment, and other learning principles.

Feedback Control

A system or process that regulates itself by monitoring its own output and feeding back information to make adjustments.