knowledge topics
Advanced Decision-Making for Corporations
KNOWLEDGE EXPECTED OF: CFP® Professionals Only
- Explain how each of the factors may impact the suitability of operating a business as a corporation, such as:
- Cost and time commitment of regulatory requirements to maintain business registration
- Desire for control
- Working capital required and available
- Business’ probability of liability
- Income expectations
- Tax impact
- Need to obtain financing
- Expectations for growth of business
- Expectations for business after death or disposition by owner
- Number of employees
- Evaluate how each of the factors may impact the suitability of operating a business as a corporation.
Glossary of Verbs (mouse over to see definition)
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Define
To state exactly the meaning of
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Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
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Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
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Compare
To note the similarities and differences between two or more things
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Estimate
To determine an approximate value for
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Calculate
To find the value using mathematics
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Convert
To change from one form or purpose to another
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Evaluate
To reach a conclusion or make a judgement through careful study
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Interpret
To give the meaning of / to construe or understand / to translate orally
Read more about the Taxonomy used in the FP-BoK
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