The Second Step of the Financial Planning Process Is to

question 62

Multiple Choice

The second step of the financial planning process is to

• A)develop financial goals.
• B)implement the financial plan.
• C)determine your current personal and financial situation.
• D)evaluate and revise your actions.
• E)create a financial plan of action.

---

Definitions:

Common Stock

A form of equity stake that signifies ownership within a corporation, granting the owner the right to vote and a portion of the corporation's earnings via dividends.

Cash Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders in the form of cash.

Stock Dividend

A type of dividend payment made in the form of additional shares of stock rather than cash, often used by companies to conserve cash.

Par Value

The nominal or face value of a bond, stock, or other financial instrument, representing the amount to be repaid at maturity.