Developing Financial Goals Is the First Step in the Financial

question 14

True/False

Developing financial goals is the first step in the financial planning process.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, usually as a distribution of profits.

Profits

Profits represent the financial gain obtained when the revenues generated from business activities exceed the expenses, costs, and taxes needed to sustain the operation.

Nonparticipating

A term used to describe policies or investments that do not share in the profits or surplus of a company, such as nonparticipating life insurance policies that do not pay dividends.

Non-cumulative

Refers to types of shares or dividends that do not accumulate or carry over unpaid dividends into future periods.