When Purchasing a Guaranteed Investment Certificate (GIC)

question 32

Multiple Choice

When purchasing a guaranteed investment certificate (GIC) ,

• A)you are always better off buying the longer-term GIC.
• B)you will earn more interest percentage-wise on the lower-dollar GICs.
• C)the amount you invest is at risk, so choose carefully.
• D)it is wise to shop around, as rates vary among financial institutions.

Calculate contribution margin for business segments.

Understand and calculate segment margins for different business segments.

Comprehend and apply the concept of break-even analysis in diverse business divisions.

Analyze the effects of common fixed expenses allocation on segment performance.

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Definitions:

Assets

Resources owned by an individual or business that have economic value or are expected to provide future benefit.

Liabilities

Financial obligations or debts owed by a company or individual.

Benefits-Received Principle

The concept that individuals should be taxed in proportion to the benefits they receive from government services.

Taxpayer Contributions

Monies paid into a government treasury by individuals or businesses for public use and services.