Finance Practice Quiz Chap 1
1.
Jeremiah, an accountant, and Bethany just returned from their honeymoon in the Bahamas. They
celebrated their marriage and the completion of Bethany's M.B.A. program. They have been encouraged
by their parents to establish some personal and financial goals for the future. However, they do not know
how to set or achieve these goals. They know that they would like to own their own home, and have
children, but those are the only goals they have considered. Jeremiah knows of a financial advisor who
might be able to help them with their predicament, but they don't think they can afford professional help.
a. If you were serving as the couple's financial advisor, how would you explain the five steps in the
financial planning process and their importance to future financial success?
b. What financial goals (shortterm, intermediate, and longterm) would you determine to be the most
important, or least important, to Jeremiah and Bethany considering their current life cycle stage? Support
your answer.
c. What four common concerns should guide the development of their financial plan? How do these relate
to Principles 4, 5, and 7?
d. List five tips for Bethany to keep in mind when preparing for interviews.
e. Identify three important strategies for young professionals such as Jeremiah and Bethany to remember
to ensure success in their chosen careers. Why do "ethical violations end careers"?
f. Why is Principle 10 the most important principle? Why is it equally relevant to financial and career
planning?
a. The five steps in the financial planning process are: (Select the best answer below.)
A.
evaluate your financial health, define your career goals, develop a plan of action, obtain a fulltime job,
and finally, review your progress, reevaluate, and revise your plan.
B.
evaluate your financial goals, define your career goals, develop a plan of action, implement your plan,
and finally, review your progress, reevaluate, and revise your plan.
Your answer is not correct.
C.
evaluate your financial health, define your financial goals, develop a plan of action, implement your plan,
and finally, review your progress to see that you have achieved all your goals. Then your financial
planning process is complete.
D.
evaluate your financial health, define your financial goals, develop a plan of action, implement your plan,
and finally, review your progress, reevaluate, and revise your plan.
This is the correct answer.
Financial planning is critical to
financial
success as the process is repeated throughout
the life cycle
, in response to changing financial and life situations. Through financial planning,
goals
are accomplished and new
plans
goals
are identified. The fivestep process begins and ends with
evaluation
.
(Select from the dropdown menus.)
b. As newlyweds, shortterm goals important to Jeremiah and Bethany might include: (Select the best
answer below.)
A.
saving for retirement.
B.
paying off any debt they brought to the marriage and planning their second honeymoon for their 25th
anniversary.
C.
purchasing a home and starting a college fund for any children they might have.
D.
paying off any debt they brought to the marriage, reviewing their insurance coverage, and beginning to
save for an emergency fund.
Your answer is correct.
Intermediate goals, within the next one to ten years, important to Jeremiah and Bethany might
include: (Select the best answer below.)
A.
beginning to save for an emergency fund and changing careers.
B.
saving for retirement.
C.
paying off any debt they brought to the marriage, reviewing their insurance coverage, and beginning to
save for an emergency fund.
D.
funds for a home purchase as well as other assets to support their lifestyle. With children come additional
financial planning needs for savings, insurance, and estate planning.
Your answer is correct.
1.
Jeremiah, an accountant, and Bethany just returned from their honeymoon in the Bahamas. They
celebrated their marriage and the completion of Bethany's M.B.A. program. They have been encouraged
by their parents to establish some personal and financial goals for the future. However, they do not know
how to set or achieve these goals. They know that they would like to own their own home, and have
children, but those are the only goals they have considered. Jeremiah knows of a financial advisor who
might be able to help them with their predicament, but they don't think they can afford professional help.
a. If you were serving as the couple's financial advisor, how would you explain the five steps in the
financial planning process and their importance to future financial success?
b. What financial goals (shortterm, intermediate, and longterm) would you determine to be the most
important, or least important, to Jeremiah and Bethany considering their current life cycle stage? Support
your answer.
c. What four common concerns should guide the development of their financial plan? How do these relate
to Principles 4, 5, and 7?
d. List five tips for Bethany to keep in mind when preparing for interviews.
e. Identify three important strategies for young professionals such as Jeremiah and Bethany to remember
to ensure success in their chosen careers. Why do "ethical violations end careers"?
f. Why is Principle 10 the most important principle? Why is it equally relevant to financial and career
planning?
a. The five steps in the financial planning process are: (Select the best answer below.)
A.
evaluate your financial health, define your career goals, develop a plan of action, obtain a fulltime job,
and finally, review your progress, reevaluate, and revise your plan.
B.
evaluate your financial goals, define your career goals, develop a plan of action, implement your plan,
and finally, review your progress, reevaluate, and revise your plan.
Your answer is not correct.
C.
evaluate your financial health, define your financial goals, develop a plan of action, implement your plan,
and finally, review your progress to see that you have achieved all your goals. Then your financial
planning process is complete.
D.
evaluate your financial health, define your financial goals, develop a plan of action, implement your plan,
and finally, review your progress, reevaluate, and revise your plan.
This is the correct answer.
Financial planning is critical to
financial
success as the process is repeated throughout
the life cycle
, in response to changing financial and life situations. Through financial planning,
goals
are accomplished and new
plans
goals
are identified. The fivestep process begins and ends with
evaluation
.
(Select from the dropdown menus.)
b. As newlyweds, shortterm goals important to Jeremiah and Bethany might include: (Select the best
answer below.)
A.
saving for retirement.
B.
paying off any debt they brought to the marriage and planning their second honeymoon for their 25th
anniversary.
C.
purchasing a home and starting a college fund for any children they might have.
D.
paying off any debt they brought to the marriage, reviewing their insurance coverage, and beginning to
save for an emergency fund.
Your answer is correct.
Intermediate goals, within the next one to ten years, important to Jeremiah and Bethany might
include: (Select the best answer below.)
A.
beginning to save for an emergency fund and changing careers.
B.
saving for retirement.
C.
paying off any debt they brought to the marriage, reviewing their insurance coverage, and beginning to
save for an emergency fund.
D.
funds for a home purchase as well as other assets to support their lifestyle. With children come additional
financial planning needs for savings, insurance, and estate planning.
Your answer is correct.
