Page 578 - Introduction to Business

552 PART 5 Finance

Jacob’s September bank statement shows the following:

Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $525
Add: Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 116
Deduct checks: Amount
Number 622 $19
Number 623 43
Number 624 68*
Number 625 50 (180)
Other charges:
Printed checks $ 8
Service charge 12 (20)
Balance $441

*This is the correct amount for check number 624.

Interpreting Business News Web Assignments
1. News articles have indicated that in the long term, 1. Use a Web search tool like Yahoo.com and find infor-
the stock market has provided better returns to mation on personal financial planning software. Pre-
investors than fixed-rate investments such as CDs pare a one-page report. Describe some of their fea-
and U.S. Treasury securities. If this is true, why tures. Use at least two Web sources. Cite your
would a person not invest in the stock market? sources, including their Web addresses, in your
2. News articles have identified some companies as report.
environmentally friendly. Would you recommend 2. Pick five major corporations. Search the Web for
investing in those companies? Why or why not? information about each firm’s stock. How would
3. Some news reporters are predicting that Asia, par- you categorize the stock in terms of growth,
ticularly China, will be the place where most eco- income, or value? If you had to pick one in which
nomic growth will occur in the future. If this is to invest, which would you pick and why?
true, would it be wise to invest in the stocks of 3. Search the Web for information about work–life
China-based corporations? Why or why not? balance. How does this relate to keeping money in
perspective?

Portfolio Projects

Exploring Your Own Case in Point Starting Your Own Business
In this chapter we present the purpose of personal After reading this chapter, you should realize that if you
financial planning. Financial planning involves gather- start your own company, personal financial planning is
ing all your financial and personal data, analyzing that even more important than if you work for someone
data, and creating a financial plan for the future. else.
Answering the questions below will relate your per- 1. What is your current net worth? What are your per-
sonal financial planning to your selected company. sonal financial goals? How would starting your
1. Locate your company’s financial reports. The net own company affect your net worth? Would having
worth of a company is the stockholders’ equity, your own company help you achieve your personal
which is calculated by subtracting total liabilities financial goals?
(debts) from total assets (resources). What is your 2. How would having your own company affect your
company’s net worth? You can calculate your per- retirement and estate planning? Would you feel
sonal net worth by subtracting your total liabilities more secure or less secure?
from your total assets. What is your net worth?
3. What are some things you want to do with the
2. Examine the financial performance of your com-
money you make? Do you think you will make
pany. Do you think your company would be a good
more or less money by starting your own com-
short-term investment? Long-term investment?
pany? Do you see possible advantages to having
3. Assume that you just inherited $100,000. How much
your own company, even if you make less money?
would you invest in your selected company? Why?
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