Phil,a Supervisor at LM Inc

question 67

Multiple Choice

Phil,a supervisor at LM Inc.,is drafting a report on his department's estimated expenses for the coming fiscal year and the precise allocation of available capital to areas such as rent,employee wages,and insurance.Phil is most likely formulating a(n) ____.

• A) strategic plan
• B) contingency plan
• C) strategic budget
• D) operating budget

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Definitions:

Yield to Maturity

The total return expected on a bond if it is held until its maturity date.

Bonds

Fixed-income investments where an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period at a variable or fixed interest rate.

Commission

A fee paid to an agent or employee for transacting a piece of business or performing a service, typically a percentage of the money received from the transaction.

Par Value

The face value of a bond or stock as stated by the issuer, which may differ from its market value.