• Which of the following statements concerning step 2 (gathering information necessary to fulfill the engagement) of the financial planning process is(are) correct?

I. Once the financial mission is established and embraced by the client, the financial planner should identify the relevant external and internal environmental information that applies to the client.

II. Only internal environmental information is gathered; external data is not gathered until financial strategies have been selected.

• I only
• II only
• Both I and II
• Neither I nor II

• Which of the following statements concerning financial goals and objectives is(are) correct?

I. Financial objectives are high-level statements of financial desire that may be for the short term or the long term.

II. Financial goals are high-level statements of financial desire that may be for the short term or the long term.

• I only
• II only
• Both I and II
• Neither I nor II

• In step 1 (establishing and defining the client-planner relationship) of the financial planning process, the financial planner should

• develop objectives
• develop a financial mission
• formulate a SWOT analysis
• develop a financial plan

• Net present value (NPV) is the difference between the present value of discounted cash flows and the initial cash outflow (investment).

A. True B. False