module 4

Question 1

The flow of cash or cash-equivalents received from work (wage or salary), capital
(interest or profit), or land(rent).

Answer 1

income

Question 2

(1) An excess of revenue over expenses for an accounting period. Also called earnings or gross profit. (2) An amount by which total assets increase
in an accounting period.

Answer 2

accounting

Question 3

Consumption that, at the end of a period, will leave an individual with the same amount of goods (and the expectations of future goods) as at the beginning of that period. Therefore, income means the maximum amount an individual can spend during a period without being any worse off. Income (and not the GDP) is the engine that drives
an economy because only it can create demand.

Answer 3

economics

Question 4

Money or other forms of payment (received periodically or regularly) from
commerce, employment, endowment, investment, royalties, etc.

Answer 4

law

Question 5

is increases in economic benefits during the accounting period in the form of
inflows or enhancements of assets or decreases of liabilities that result in increases in
equity, other than those relating to contributions from equity participants (IASB
Framework)

Answer 5

income

Question 6

There are two types of income:

Answer 6

sale revenue
gains

Question 7

Income earned in the ordinary course of business activities of the entity

Answer 7

sale revenue

Question 8

Income that does not arise from the core operations of the entity.

Answer 8

gains

Question 9

means keeping your property safe from being taken by
someone who wins a lawsuit against you. It can range from a lawsuit related to a negligent
act that you performed, such as causing a car accident, to a lawsuit related to the
foreclosure of property for which you have stopped paying the mortgage

Answer 9

asset protection

Question 10

is proactive legal action that protects your assets from threats such as creditors, divorce,
lawsuits and judgments.

Answer 10

asset protection planning

Question 11

is the overseeing of residential,
commercial and/or industrial real estate, including apartments, detached houses,
condominium units, and shopping centers. It typically involves the managing of property
that is owned by another party or entity.

Answer 11

property management

Question 12

6 Common Property Management Responsibilities Malcolm (2018)

Answer 12

1. rent responsibilities
2. attracting tenants
3. screening tenants
4. maintenance and repairs
5. knowledge of landlord-tenant laws
6. Managing the Budget and Maintaining Financial Records

Question 13

As the supervisor of day-to-day activities, property managers are also responsible
for maintaining the budget for the building and keeping detailed records. Managers
are often given a set budget for the building they need to operate within, and it is
up to them to use their discretion to make improvements, order repairs, and keep
an emergency fund. The property manager may also be asked to file taxes for the
property or help the owner during tax season.

Answer 13

5. managing the budget and maintaining financial records

Question 14

Property managers are often the first line of contact in an eviction or dispute, as well as
in the general legal functioning of a rental property. In this role, property managers need
to know the legal processes for screening a tenant, handling security deposits,
terminating leases, eviction, safety compliance, and more. A good property manager will
have an in-depth understanding of the landlord-tenant laws and be able to carry out their
responsibilities in the way these laws dictate

Answer 14

5. knowledge of landlord-tenant laws

Question 15

The property manager is responsible for keeping the property in a safe and
habitable condition. This includes maintenance, repairs, and the updating of
facilities like laundry and parking.

Answer 15

4. maintenance and repairs

Question 16

Property managers should be screening tenants as they apply for a place in their
building. The screening process can differ but often includes running credit
checks and checking references and/or proof of employment.

Answer 16

3. screening tenants

Question 17

Any vacancies are expected to be filled by the property manager, and it’s their role
to find new tenants who are a good fit for the building. They should be prepared to
advertise the space effectively and meet with potential tenants, showing them the
features of the apartment.

Answer 17

2. attracting tenants

Question 18

Property managers are often responsible for dealing with rent issues. They often
set the initial rent level tenants agree to. This requires an understanding of the
market where the property is located and the type of clientele they would like to
attract.

Answer 18

1. rent responsibilities

Question 19

to a company arising from the possibility of liability for damages resulting
from the purchase, ownership, or use of a good or service offered by that company.
can be identified and mitigated through careful product design and testing,
but may also be inherent in the nature of the product to some extent, as in the case of
automobiles or pharmaceutical supplies.

Answer 19

liability risk

Question 20

is the risk that we may hurt a third party and will be sued for bodily injury
or other damages. Most of us have heard about auto liability; pollution liability; product
liability; medical malpractice; and the professional liability of lawyers, accountants,
company directors and officers, and more.

Answer 20

liability risk

Question 21

also known as errors and omissions, or
malpractice when it relates to bodily harm – responds to claims that arise from acts
of professional negligence. Professional negligence may arise for example from:

Answer 21

professional liability coverage

Question 22

Your corporation provides engineering advice. One of your certified
professional engineers designs the structural support system for balconies in a new
condominium. Shortly after construction, glass from balconies falls to the ground. Your
client and the construction firm that followed your engineer’s advice demand
compensation from your organization to cover the cost of reconstructing the support
system.

Answer 22

financial loss

Question 23

Your clinic employs licensed professionals – including registered nurses,
therapists and physicians. An individual sues a chiropractor who works in your facility
after a treatment. The injured person names your clinic and employees in a medical
malpractice lawsuit

Answer 23

bodily injury

Question 24

is an optional component that provides Employers with choices in
the health care needs of their employees and the flexibility to use benefit dollars
where they most need them.

Answer 24

incidental health expense

Question 25

policy is a contract with an insurance company. In exchange for
premium payments, the insurance company provides a lump-sum payment, known
as a death benefit, to beneficiaries upon the insured’s death.

Answer 25

life insurance

Question 26

generally provides protection for a set period of time, while
permanent insurance, such as whole and universal life, provides lifetime coverage.

Answer 26

term life insurance

Question 27

is an integral step to attaining peace of mind. When it comes
to life insurance, an all-important cog in your financial plan, your needs may differ
depending on where you stand in your personal and professional life at a given
point of time. There are various life events and stages that may affect your life
insurance needs. It’s important to consider these stages to understand how life
insurance planning plays a role in your financial plan.

Answer 27

financial planning

Question 28

There are two common methods for calculating the amount of life insurance
coverage you should carry.

Answer 28

1. the lump sum needs
2. income replacement

Question 29

calculates the amount needed to replace a
percentage of your income for a specific number of years, usually until your
youngest child is out of college or until your mortgage is paid off.

Answer 29

income replacement

Question 30

calculates the amount needed to pay:
 Outstanding debts
 Funeral expenses
 Taxes
 Household expenses
 Emergency needs

Answer 30

lump sum needs