The Purpose of Financial Planning Is to Help Do All

question 75

Multiple Choice

The purpose of financial planning is to help do all of the following, except

• A) set goals.
• B) increase your spending.
• C) become financially educated.
• D) increase wealth or net worth.

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Definitions:

Income Before Taxes

The profit a company generates from its operations before tax obligations are deducted.

Interest

The cost of borrowing money or the return on investment, typically expressed as a percentage of the principal amount.

Turnover

The rate at which employees leave a company and are replaced by new employees or the rate at which inventory is sold and restocked.

Average Operating Assets

A measure of the investment needed to generate the operating income of a company, averaged over a period.