Question

4. Tue| | - 5. A colleague needs your financial counsel so he could needs your financial counsel so he could put his money into an investment. Write down any FOUR questions you are likely to ask this colle UR questions you are likely to ask this colleague before he invests his money? 6. What would you look out for in a good, achievable financial plan? Give any TWO. 7. A Client has tasked you to prepare a financial plan for her. She requires to see the process you will use. Itemise the first FOUR of the processes. 8. Distinguish between the following pairs with respect to insurance business: a. Insurance and gambling b. Pure risk and speculative risk C. Insurable and uninsurable risk d. Liquidated and unliquidated damages 9. What THREE main decision-points will you expect to see in a financial strategy? 10. In terms of time horizon, briefly explain the types of financial planning. Your explanation should include the tenure and the emphasis. 11. Your Branch manager argues that since we are spending a lot on the repairs of our fixed assets, we shall not depreciate them'. He wants your opinion. 12. You received your company's bank statement from Fidelity Bank showing a balance of Ghc735,000 in your company's favour. But your office cash book shows that you were supposed to have Ghc1,500,000 at the bank. Identify any THREE factors that may have led to this difference. 13. Write down the six principles/laws of insurance and explain any one.

question 5 to 13 please. As many as can be answered for comparison purposes. thanks

Answer 1

5. What is the rate of return?

Is the investment risky?

What are the available options in case of withdrawal from the investment?

What are the tax implications of the investment?

6. Long term vision and planning.

Plan of action in case of contingencies like financial emergencies.

9. Application of funds.

Return on investment.

Analysis of profitability.

11. Depreciation is compulsory and has to be included as an expense irrespective of the amount of repairs incurred on the asset.

13. Error in preparation of bank reconciliation statement, an entry visible in the bank statement might not have been updated in our reconciliation statement.

Unrecorded transactions might be present, like a cheque issued but not entered in the books.

Mistakenly recording cash transactions as bank transactions.