Liability acquisition planning addresses how you are going to pay for your asset purchases using liabilities, or money.

The_______ ( A.) Advantage B.) Disadvantage ) of liabilities is that, by law, the money ______ ( A.) Must B.) May not ) be repaid.

In general, your borrowing needs tend to _______ ( A.) Decrease B.) Increase ) as you acquire additional and/or more expensive assets.

Insurance planning, on the other hand, provides a way of______ ( A.) Increasing B.) Reducing )your financial risks and _______( A.) Damaging B.) Protecting ) your income and assets. Improper insurance planning can be expensive and can lead to unprotected possessions.

Diego graduated from college this past May and is considering the purchase of a new car. Hes considering either a used VW Jetta or a new Toyota Corolla. This is an example of ________ planning.

A.) Asset Acquisition B.) Insurance C.) Savings and Investment D.) Liability

After receiving a raise at work, Anna is trying to decide whether to invest the new funds into a savings account or to purchase additional shares of stock in Apple Inc. This is an example of _______ planning.

A.) Asset Acquisition B.) Insurance C.) Savings and Investment D.) Liability