MCS 2100 Chapter 1-12: MCS 2100 Textbook Notes

• School: University of Guelph
• Department: Marketing and Consumer Studies
• Course: MCS 2100
• Professor: May Aung

Document Summary

Obtain!career!training,!create!effective!record!system,!regular!savings!and! investment!program,!accumulate!emergency!fund,!purchase!appropriate! insurance,!implement!flexible!budget,!evaluate!and!select!investments,! establish!retirement!goals,!create!a!will!and!estate!plan: 6!steps!in!the!financial!planning!process, step!1! !determine!your!current!financial!situation:! Liquidity!risk! !difficulty!of!converting!to!cash!or!sell!without!significant! loss: product!risk! !products!flawed!or!don"t!meet!expectations,!retailers!not! honouring!obligations, risk!of!death! !premature!death!causing!financial!hardship, risk!of!income!lost! !job!loss!or!injury, health!risk! !increased!medical!costs,!reduce!working!capacity!or!life! expectancy, asset!and!liability!risk! !assets!stolen!or!damaged,!suing!for!negligence! or!for!damages!caused!by!yourself, step!5! !create!and!implement!a!financial!action!plan, step!6! !re[evaluate!and!revise!your!plan! Social! !married!at!later!age,!more!households/multiple!incomes,!single!parents,! living!longer: goals!should!be!realistic,!stated!in!specific/measurable!items,!time!frame,!indicate!type! of!action!to!be!taken, how!economy!affects!decisions, economics! !study!of!how!wealth!is!created!and!distributed, market!forces! !supply!and!demand,!production!costs!and!competition, financial!institutions! !influence!of!the!bank!of!canada, global!influences! !level!of!exports,!foreign!investors,!competition, economic!conditions:! Store and maintain personal records and documents. Assets: liquid assets cash and items easily converted to cash, real estate home, condo, property owned, personal possessions automobiles or other possessions. Investment assets funds for long term needs: current liabilities debts to be paid within short time, long-term liabilities do not have to pay until more than a. Net worth: assets liabilities, high net worth may still have financial difficulties. No liquid cash available to pay current expenses. Insolvency inability to pay debts when they are due because liabilities far exceed the value of assets: increase net worth by: Shows inflow and outflow during a given time period.