Question

Match each word with the phrase: diversification- the period of time after people end their working careers, guaranteed- to promise and deliver

Answer 1

Answer:

*Diversification => The practice of putting money into more than one kind of investment

*Guarantee => To promise and deliver a future result

*Return => The money earned on an investment in a certain period of time

*Liquidity => The ability to quickly convert something into cash

*Retirement => The period of time after people end their working careers

Explanation:

1. Diversification is the act of investing resources into different areas or sectors of an economy. For example, a company that produces mainly clothing and textile materials can decide to diversify by investing in other areas like agriculture or food processing.

2. Guarantee is usually the ability of a company to promise, for example, certain qualities of a product to the consumers, and also matching the promise with the actual fulfillment of what was promised to the consumers.

3. Return: for example, if I invest $5000 on a restaurant business, and after like 12 months, the money generated on the money invested is my returns.

4. Liquidity: for example, if I have harvested cash crops, and I need money immediately, I can easily generate cash by selling them. The ease at which an asset can be converted to cash is what is termed liquidity.

5. Retirement: virtually all careers have a set time when their employees are due for retirment. The period when one leaves a career officially, after spending a certain period of years in service, is what is termed retirement.