BUSI 352 FINAL EXAM COMPLETE QUESTIONS AND CORRECT
DETAILED ANSWERS
Updated Questions and Answers 100% Verified Exam Prep
,Usual financial planning goals include the following except: C. Career Planning
A. retirement funding
B. Current lifestyle
C. Career planning
D. Estate planning
A client's formal Financial planning report that summarizes all B. Turnover - when and how the client will sell certain investments
of the following except:
A. strategy - how the client gets where he or she wants
B. Turnover - when and how the client will sell certain
investments
C. Analysis - where the client is now
D. Objectives - where the client wants to be
All of the following is true regarding the types of financial A. taxes add to the cost of an investment and slow progress toward the client's goals
problems clients will face in their lives?
A. taxes add to the cost of an investments and slow progress
toward the client's goals
B. The inability to quickly turn invested capital into spendable
cash is related to inflation
C. Clients should not be concerned about leaving to assets to
children or young adults
D. Psychological comfort has no place in the financial
planning process
Which of the following is true regarding the contends of the D. The plan should have a discussion of how to achieve goals
financial plan?
A. The length of the presentation of the plan should always be
the same, regardless of the contents of the plan
B. once the plan is in place it should not be changed
C. Checklists are usually a bad idea in the plan
D. The plan should have a discussion of how to achieve goals
The six steps in the financial management process outlined by D. Establish living wills
the authors include the following except:
A. establish goals
B. collect data
C. measure performance
D. establish living wills
,Which of the following is true regarding risk? C. Attitudes about risk are likely to change over a person's lifetime
A. attitudes towards risk are easy to measure
B. Defining the nature of risk is objective for each person
C. Attitudes about risk are likely to change over a person's
lifetime
D. Risk attitudes are due to factors that are relatively easy to
deal with
Which of the following statements is true regarding financial C. After they have been identified, they should be prioritized
objectives?
A. Good financial objectives are stated in aspirational terms
B. All financial objectives have short time horizon
C. After they have been identified, they should be prioritized
D. Once identified, they do not need to be revisted
Which of the following is true regarding developing a financial A. this involves budgeting income and expenses
plan?
A. this involves budgeting income and expenses
B. if a client needs an emergency fund, no recommendations
are needed
C. Estimating returns should not be needed
D. the planner should guard against projections of the client's
expected financial position
Which of the following is true regarding a person's standard of B. income not allocated to maintain a person's standard of living should be allocated to
living? other financial objectives
A. maintaining a person's lifestyle should generally take a
minority of a person's resources
B. income not allocated to maintain a person's standard of
living should be allocated to other financial objectives
C. It should be easy to accomplish financial objectives even if
almost all a person's income is used to maintain lifestyle
D. Every person should spend the same amount of income to
maintain lifestyle
, Which of the following is true regarding financial security? C. a pension plan left by a decedent to a grandchild may retain less than a quarter of its
A. financial security is based on absolute wealth or income value
B. taxes are not a consideration when determining financial
security
C. a pension plan left by a decedent to a grandchild may
retain less than a quarter of its value
D. Wealth and income are diverted because of inflation and
slippage
Which of the following is true regarding taxes? A. high tax brackets indicate planning opportunities
A. high tax brackets indicate planning opportunities
B. it is not possible to shift income through gifting
C. It is not really possible to save on taxes by deferring
income
D. It is not possible to transfer wealth through generations' tax
free
Which of the following is NOT part of the definition of an C. holds a CFP or series 7 license
Investment Advisor as defined by the Investment Advisers Act
of 1940 (the Act)?
A. provides advice regarding securities
B. is in the business of providing advice
C. holds a CFP or series 7 license
D. receives compensation for advice
The Act defines compensation as C. receipt of any economic benefit
A. commission only
B. fees only
C. receipt of any economic benefit
D. 12 (b) 1 fees only
Which of the following is NOT exempt from the definition of an B. insurance agent who advises clients about no load mutual funds
investment advisor?
A. publisher of the local newspaper, the Daily Beagle
B. insurance agent who advises clients about no load mutual
funds
C. Those who advise clients solely about U.S. treasury
obligations
D. local attorney who occasionally advises clients about
setting up investment accounts for their jury awards
DETAILED ANSWERS
Updated Questions and Answers 100% Verified Exam Prep
,Usual financial planning goals include the following except: C. Career Planning
A. retirement funding
B. Current lifestyle
C. Career planning
D. Estate planning
A client's formal Financial planning report that summarizes all B. Turnover - when and how the client will sell certain investments
of the following except:
A. strategy - how the client gets where he or she wants
B. Turnover - when and how the client will sell certain
investments
C. Analysis - where the client is now
D. Objectives - where the client wants to be
All of the following is true regarding the types of financial A. taxes add to the cost of an investment and slow progress toward the client's goals
problems clients will face in their lives?
A. taxes add to the cost of an investments and slow progress
toward the client's goals
B. The inability to quickly turn invested capital into spendable
cash is related to inflation
C. Clients should not be concerned about leaving to assets to
children or young adults
D. Psychological comfort has no place in the financial
planning process
Which of the following is true regarding the contends of the D. The plan should have a discussion of how to achieve goals
financial plan?
A. The length of the presentation of the plan should always be
the same, regardless of the contents of the plan
B. once the plan is in place it should not be changed
C. Checklists are usually a bad idea in the plan
D. The plan should have a discussion of how to achieve goals
The six steps in the financial management process outlined by D. Establish living wills
the authors include the following except:
A. establish goals
B. collect data
C. measure performance
D. establish living wills
,Which of the following is true regarding risk? C. Attitudes about risk are likely to change over a person's lifetime
A. attitudes towards risk are easy to measure
B. Defining the nature of risk is objective for each person
C. Attitudes about risk are likely to change over a person's
lifetime
D. Risk attitudes are due to factors that are relatively easy to
deal with
Which of the following statements is true regarding financial C. After they have been identified, they should be prioritized
objectives?
A. Good financial objectives are stated in aspirational terms
B. All financial objectives have short time horizon
C. After they have been identified, they should be prioritized
D. Once identified, they do not need to be revisted
Which of the following is true regarding developing a financial A. this involves budgeting income and expenses
plan?
A. this involves budgeting income and expenses
B. if a client needs an emergency fund, no recommendations
are needed
C. Estimating returns should not be needed
D. the planner should guard against projections of the client's
expected financial position
Which of the following is true regarding a person's standard of B. income not allocated to maintain a person's standard of living should be allocated to
living? other financial objectives
A. maintaining a person's lifestyle should generally take a
minority of a person's resources
B. income not allocated to maintain a person's standard of
living should be allocated to other financial objectives
C. It should be easy to accomplish financial objectives even if
almost all a person's income is used to maintain lifestyle
D. Every person should spend the same amount of income to
maintain lifestyle
, Which of the following is true regarding financial security? C. a pension plan left by a decedent to a grandchild may retain less than a quarter of its
A. financial security is based on absolute wealth or income value
B. taxes are not a consideration when determining financial
security
C. a pension plan left by a decedent to a grandchild may
retain less than a quarter of its value
D. Wealth and income are diverted because of inflation and
slippage
Which of the following is true regarding taxes? A. high tax brackets indicate planning opportunities
A. high tax brackets indicate planning opportunities
B. it is not possible to shift income through gifting
C. It is not really possible to save on taxes by deferring
income
D. It is not possible to transfer wealth through generations' tax
free
Which of the following is NOT part of the definition of an C. holds a CFP or series 7 license
Investment Advisor as defined by the Investment Advisers Act
of 1940 (the Act)?
A. provides advice regarding securities
B. is in the business of providing advice
C. holds a CFP or series 7 license
D. receives compensation for advice
The Act defines compensation as C. receipt of any economic benefit
A. commission only
B. fees only
C. receipt of any economic benefit
D. 12 (b) 1 fees only
Which of the following is NOT exempt from the definition of an B. insurance agent who advises clients about no load mutual funds
investment advisor?
A. publisher of the local newspaper, the Daily Beagle
B. insurance agent who advises clients about no load mutual
funds
C. Those who advise clients solely about U.S. treasury
obligations
D. local attorney who occasionally advises clients about
setting up investment accounts for their jury awards
