You Are Planning on Starting Your Own Business in 18

question 94

Multiple Choice

You are planning on starting your own business in 18 months and you intend to purchase a new home.You have looked carefully at your budget and have determined that you can afford a PITI of $900 per month.Your banker has told you that you can easily qualify for a PITI of $1,150 per month.Which of the following is the most reasonable explanation for this discrepancy?

• A)Your banker knows you really would be happier in a more expensive house.
• B)Your banker is not aware of your other long-term financial goals.
• C)Your banker's number is more accurate than your number.
• D)None of the above is a reasonable explanation.

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Definitions:

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that aim to bring transparency, accountability, and efficiency to financial markets around the world.

Government Organizations

Entities established by a government to carry out specific functions, policies, or objectives within a regulatory or administrative framework.

Redistribute Wealth

The transfer of wealth from certain individuals or groups to others to achieve economic balance and social equity, often through taxation and welfare policies.

Government

The organization, machinery, or agency through which a political unit exercises authority and performs functions and which is usually classified according to the distribution of power within it.