EED 326

First and last name

Question 1/5
Explain the role of portfolio investment in the National Economic Development.
(descriptive question)

Question 2/5
Define the Following: Income, Expenditure and Savings;
A. Income is the money that is received as a result of the normal business activities of an individual or a
business. Internationally, the accounting term income is synonymous to term revenue. The International
Accounting Standards Board uses this definition:
Income 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.
B. Expenditure is the amount of money spent on something.
C. Saving generally means putting money aside, for example, by putting money in the bank or investing in
a pension plan. In a broader sense, saving is typically used to refer to economizing, cutting costs, or to
rescuing someone or something. In terms of personal finance, saving refers to preserving money for
future use - typically by putting it on deposit - this is distinct from investment where there is an element
of risk. Saving differs from savings in that the first refers to the act of putting aside money for future use,
whereas the second refers to the money itself once saved.

Question 3/5
Explain the role of savings in starting and sustaining businesses;
A. Saving money is important in starting and sustaining businesses. It allows entrepreneurs to have the
necessary capital to start their business and to keep it running during tough times. By saving money,
entrepreneurs can also avoid taking on too much debt, which can be a burden on the business in the long
run.

Question 4/5
What is personal finance?
A. Personal finance is the application of the principles of finance to the monetary decisions of an individual
or family unit. It addresses the ways in which individuals or families obtain, budget, save and spend
monetary resources over time, taking into account various financial risks and future life events.
Components of personal finance might include checking and savings accounts, credit cards and
consumer loans, investments in the stock market, retirement plans, social security benefits, insurance
policies, and income tax management.

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Question 5/5
Explain the role of savings in starting and sustaining businesses;
A. Want to start a business? Start saving your money.
Have you ever dreamed of starting your own business and being your own boss with your own hours? It
may seem like a dream, but it’s not impossible to attain—a majority of first-generation millionaires got
there just by starting their own businesses. These aren’t just tech businesses though—these are
electricians, plumbers, and other local small businesses. These are companies that anyone can
start—even you.
To do so, however, you need to have some startup capital. For some companies, venture funding is the
way to go, but for most, self-funding is essential. This means that you will need to have money saved up
to start your company. If you are serious about wanting to start your own business, you will need to
begin budgeting for it.
If you want to save money to start your own business, you have two options: