BUSI 352- FINAL EXAM | 100 CORRECT ANSWERS | LATES UPDATE

A good financial planning report must include an analysis of all the following except: A. where you are now B. where you want to be C. Why you failed previously D. How to reach your goals ANSWER: C. Why you failed previously Usual financial planning goals include the following except: A. retirement funding B. Current lifestyle C. Career planning D. Estate planning ANSWER: C. Career Planning A client's formal Financial planning report that summarizes all of the following except: A. strategy - how the client gets where he or she wants B. Turnover - when and how the client will sell certain investments C. Analysis - where the client is now D. Objectives - where the client wants to be ANSWER: B. Turnover - when and how the client will sell certain investments All of the following is true regarding the types of financial problems clients will face in their lives? A. taxes add to the cost of an investments and slow progress toward the client's goals B. The inability to quickly turn invested capital into spendable cash is related to inflation C. Clients should not be concerned about leaving to assets to children or young adults D. Psychological comfort has no place in the financial planning process ANSWER: A. taxes add to the cost of an investment and slow progress toward the client's goals Which of the following is true regarding the contends of the financial plan? A. The length of the presentation of the plan should always be the same, regardless of the contents of the plan B. once the plan is in place it should not be changed C. Checklists are usually a bad idea in the plan D. The plan should have a discussion of how to achieve goals ANSWER: D. The plan should have a discussion of how to achieve goals The six steps in the financial management process outlined by the authors include the following except: A. establish goals B. collect data C. measure performance D. establish living wills ANSWER: D. Establish living wills Which of the following is true regarding risk? A. attitudes towards risk are easy to measure B. Defining the nature of risk is objective for each person C. Attitudes about risk are likely to change over a person's lifetime D. Risk attitudes are due to factors that are relatively easy to deal with ANSWER: C. Attitudes about risk are likely to change over a person's lifetime Which of the following statements is true regarding financial objectives? A. Good financial objectives are stated in aspirational terms B. All financial objectives have short time horizon C. After they have been identified, they should be prioritized D. Once identified, they do not need to be revisted ANSWER: C. After they have been identified, they should be prioritized Which of the following is true regarding developing a financial plan? A. this involves budgeting income and expenses B. if a client needs an emergency fund, no recommendations are needed C. Estimating returns should not be needed D. the planner should guard against projections of the client's expected financial position ANSWER: A. this involves budgeting income and expenses Which of the following is true regarding a person's standard of living? A. maintaining a person's lifestyle should generally take a minority of a person's resources B. income not allocated to maintain a person's standard of living should be allocated to other financial objectives C. It should be easy to accomplish financial objectives even if almost all a person's income is used to maintain lifestyle D. Every person should spend the same amount of income to maintain lifestyle ANSWER: B. income not allocated to maintain a person's standard of living should be allocated to other financial objective