CAP GS839 Self Test Review with
correct answers A+ graded
"Are you called or are you driven?", asks Bob Buford. Which statement or statements below are implied in his question?
I. Some of us are called to a higher purpose
II. Many of us are driven by our own egos - CORRECT ANSWER-BOTH
"Are you hired to help or hired help?", asks Patricia Angus. She goes on to suggest that either answer is fine if you and the client or donor are in agreement. Let us say
the client sees you as the provider of a particular giving opportunity, product, or service. In that case, which of these is (are) appropriate?
I. Engaging in a discernment based interview in which you elicit the client or donor's life story
II. Engaging in a generative conversation in which the client or donor has a mountaintop experience or transformational insig ht - CORRECT ANSWER-neither
"Bob, what is in the box?" When asked that by a life coach, why was that question so challenging?
I. Bob was raised by his mother to take over the family business and make it a success and he grew up with a strong religious orientation
II Bob felt he could only have one highest value, either worldly success or success by the standards of his faith - CORRECT ANSWER-BOTH
"Commit to asking more and better questions. Pause and absorb the answers. Embrace a beginner's mind. Hear without listening for a solution. Let time stand still.... In
the final hours, human connection is all that matters. That is legacy." Scott Fithian wrote that. Which quotation or quotation below say or says much the same as what
Scott says?
I. "When someone is thinking around us, much of the quality of what we are hearing will be our effect on them." (Nancy Kline).
II. "Listen with mindfulness, so that your thoughts and emotions pass like clouds across the sky." (Patricia Angus.) - CORRECT ANSWER-Both
"Family governance" addresses wealth across generations. Which practice or practices are commonly found in families whose wealth has remained intact or grown over
many generations, say, five or six?
I. A family constitution
II. A family council holding regular family meetings - CORRECT ANSWER-Both
"Great life, great wife, but my life? My wife?" A man who feels that way is likely in what "predictable crisis of adult life?" - CORRECT ANSWER-Midlife crisis
"In fact, the quality of our attention determines the quality of other people's thinking. Attention, driven by deep respect and genuine interest, and without interruption, is the
key to a Thinking Environment. Attention is that powerful. It generates thinking. It is an act of creation." That is from Nan cy Kline. Who else in this course would be likely to
agree, or to say similar things?
I. Carl Rogers
II. Otto Scharmer - CORRECT ANSWER-Both
"Operation successful, patient died." Let us say your client or donor has a perfect estate plan in which no estate taxes are paid, even though tens or hundreds of millions
of dollars transfer to heirs. Yet a generation later the heirs are miserable, most of the money has been wasted, and the third generation is back to "shirtsleeves," with no
inheritance. From this observation, the authors in this assignment draw all of these conclusions, EXCEPT
A.Plans on paper matter, but so does how well those plans are executed over the generations
B.How plans are executed will depend on how well heirs are mentored, educated, parented, coached and trained
C.Family governance, including family council, family fund or bank, and a formal process of developing procedures and practices drawn from family vi sion and principles
are all important, as important as tax planning
D.Addressing human issues is inappropriate on a planning team, - CORRECT ANSWER-Addressing human issues is inappropriate on a planning team, since these
issues are personal and private and do not often admit of solutions
"The law of unintended consequences." With respect to multi-generational planning, which example or examples below illustrate(s) that law with respect to trusts?
I. Client asks for tax minimization, protection of assets, and a secure income for life for heirs. Advisors puts in place a trust that meets these goals. Heirs decide never to
work, and frequently complain that the trust is more a curse than a blessing.
II. Client asks that her heir be set up for life in a way that discourages him from leading an unproductive life. The advisor sets up a trust that makes distributions to cover
health, education, maintenance, support. Under "maintenance" the trust is instructed to pay for the heir's wedding. The heir marries and divorces his wife every year, in
order to have a lavish party at a destination resort.
A. I. only
B. II. only
C. Both I. and II.
D. Neither I. nor II. - CORRECT ANSWER-BOTH
"The Power to Produce Wonders: The Value of Family Philanthropy," from the National Center for Family Philanthropy, 2010, says that among the reasons to do family
philanthropy is that it helps children develop a "view outside the airport."
Which statement(s) below is (are) consistent with the meaning of that remark?
I. Wealthy children lead privileged lives and need to see how others who are less fortunate live.
II. Wealthy children are themselves "at risk" in that they may grow up with limited vision and without empathy for those in other walks of life. - CORRECT ANSWER-BOTH
"The richness of spirit that inspires sincere generosity and philanthropic commitment must thrive in the world of privilege, money, and power" (some might say in spite of
it). So says the study by the National Center for Family Philanthropy. Implicit in this remark are all of the elements below, EXCEPT:
A. Sincere generosity is a sign of a rich spirit.
B. Richness of spirit may not thrive in a world of privilege, money, and power.
C. Richness of spirit, some would say, is less likely to be found among those who have great wealth and power than among peop le of more ordinary means.
D. The wealthy are better able, than is the general public, to develop a richness of spirit because the wealthy have the means to do so, via private schools, tutors, and
philanthropy and other resources unavailable to those of moderate means. - CORRECT ANSWER-The wealthy are better able, than is the general public, to develop a
richness of spirit because the wealthy have the means to do so, via private schools, tutors, and philanthropy and other resou rces unavailable to those of moderate means.
, "The urgent challenges - or threats our shared community now faces, the choices it must make, and the hope to which we can aspire. This part of the pu blic narrative
brings the story up to date, showing why now is the crucial choice point in the life of the community." What "story" (within the public narrative) is being described here? -
CORRECT ANSWER-The story of now
"Whose money is it?" That question, about the money inside a family foundation, is raised by the National Center for Family P hilanthropy study. Which statement or
statements below draw out the meaning of that question?
I. The family made the money and may control the foundation; in that sense it is "their money"
II. The foundation is established by law to serve the public interest, therefore the money belongs to the community it serves. - CORRECT ANSWER-BOTH
100X. What does that motto mean to Bob Buford? - CORRECT ANSWER-Be fruitful 100 times over
A 78 year old is meandering in a conversation with David Solie. She mentions so many names, places, starts so many stories and finishes none, yet there is an urgency
in the voice. Her mind is shuttling at top speed as if weaving a tapestry and unweaving it. Which statements or statement bel ow apply, in the view of Solie?
I. The woman is engaging in life review.
II. If listened to without advice or judgement, she may discover in her own story her own organic legacy. - CORRECT ANSWER-Both
A discernment based advisor will likely do the following:
I. Use open ended questions, followed by probing, closed ended questions
II. Confirm understanding before moving ahead - CORRECT ANSWER-BOTH
A good discovery/agreement conversation for a philanthropic client or donor should include which of these?
I. Where do you want an impact?
II. When do you want to have an impact? - CORRECT ANSWER-Both
A New Yorker cartoon shown in the lecture for assignment on identity and the adult life cycle shows a dignified, middle aged man in a suit, telling a distraught looking
woman who sits on his couch, "Thank you for sharing your deepest feelings. Remember I am your attorney." In your best judgement, what is the course author meaning
to suggest, about deep listening and our respective seats at the planning table, by including this cartoon?
I. Professionals should listen well
II. We professionals must all respect the limits of our professional roles and responsibilities - CORRECT ANSWER-Both
A saying among consultative sales trainers is this: "Prescription before diagnosis is malpractice." Which of the processes below would be "malpractice" by that definition?
I. 1) Establish and define the advisor-client relationship, 2) determine goals and gather data, 3) analyze and evaluate the data, 4) develop and present a plan, 5)
implement the plan, 6) monitor the plan
II. 1) Intuit the client or donor's needs, 2) run gift or sales concept, 3) make appointment, 4) present concept, 5) close or ask, 6) answer objections and close - CORRECT
ANSWER-1) Intuit the client or donor's needs, 2) run gift or sales concept, 3) make appointment, 4) present concept, 5) close or ask, 6) answer objections and close
Above the line planning addresses which of these?
(A) The "why" of planning
(B) The "how" of planning
(C) The tools of planning
(D) The cost of planning - CORRECT ANSWER-The "why" of planning
Above the line questions include which of these?
I. "What keeps you awake at night?"
II. "Who is the beneficiary of your IRA?" - CORRECT ANSWER-I. "What keeps you awake at night?"
According to the 2013 US Trust Survey of The Philanthropic Conversation, all of these were among the top four things wealthy clients are concerned about with respect to
their giving, EXCEPT
A. Having enough for themselves
B. Gift may not be used wisely
C. Lack of connection to the charity
D. Fear that gift will lead to being asked for more money from others - CORRECT ANSWER-Having enough for themselves
According to the National Center for Family Philanthropy study, what is "generally considered the greatest challenge to be fa ced" by multi-generational family
philanthropy? - CORRECT ANSWER-Passing on the stewardship of the family philanthropy across generations
All of the following considerations for giving are mentioned in Bill Wallace's Remarks to Bethesda Country Club, with regard to his family philanthropy, EXCEPT
(A) Honor parents
(B) Give back to a school from which he had gained much
(C) Feel satisfaction in doing the right thing
(D) Reduce taxes - CORRECT ANSWER-Reduce taxes
All of these are good descriptions of "grassroots grantmaking," EXCEPT
(A) Grantmaking in our own backyard by getting personally involved with the recipients of the gift and relying on them, as leaders i n their own right, to get things done
(B) Grantmaking by walking around
(C) Grantmaking in a local context, with deep local knowledge, and a personal commitment to life in that community
(D) Grantmaking without a real plan for how the money will produce a good outcome - CORRECT ANSWER-Grantmaking without a real plan for how the money will
produce a good outcome
All of these are good descriptions of "grassroots grantmaking," EXCEPT
(A) Grantmaking in our own backyard by getting personally involved with the recipients of the gift and relying on them, as le aders in their own right, to get things done
(B) Grantmaking by walking around
(C) Grantmaking in a local context, with deep local knowledge, and a personal commitment to life in that community
(D) Grantmaking without a real plan for how the money will produce a good outcome - CORRECT ANSWER-Grantmaking without a real plan for how the money will
produce a good outcome
All of these are included among the eight domains of the financial planner's role, as defined by the CFP Board, EXCEPT
A. Develop recommendations
B. Communicate recommendations
C. Monitor recommendations after they have been implemented
D. Assess social impact of any charitable recommendations - CORRECT ANSWER-Assess social impact of any charitable recommendations
All of these shortfalls or gaps can be determined by projecting the client's financial situation forward with financial planning software, EXCEPT
(A) Gap between desired social impact and likely result of gift
(B) Gap in money needed at retirement
(C) Gap in money needed by survivors at death of breadwinner
(D) Gap between money needed at disability and actual income if disabled - CORRECT ANSWER-Gap between desired social impact and likely result of gift
Among the financial planning industry trends cited by Craig Lemoine, are each of these, EXCEPT:
a. Boomer quest for meaning and impact
b. Increase in dual-income families
c. Volatility of financial conditions
d. Evolving tax environment - CORRECT ANSWER-Boomer quest for meaning and impact
As a young rising star in business, building Buford Cable Television, Bob Buford says his orientation was "up and to the right." What is the best paraphrase? - CORRECT
ANSWER-He was oriented to making his net worth grow, as on a chart, upwards and to the right.
As advisors move up from subject matter expert, to subject matter expert plus knowledge of affiliated field, to valuable reso urce, to trusted advisor, what happens to
breadth of of issues addressed, and to depth of relationship?
I. Breadth of issues addressed decreases
II. Depth of relationship increases - CORRECT ANSWER-II. Depth of relationship increases
correct answers A+ graded
"Are you called or are you driven?", asks Bob Buford. Which statement or statements below are implied in his question?
I. Some of us are called to a higher purpose
II. Many of us are driven by our own egos - CORRECT ANSWER-BOTH
"Are you hired to help or hired help?", asks Patricia Angus. She goes on to suggest that either answer is fine if you and the client or donor are in agreement. Let us say
the client sees you as the provider of a particular giving opportunity, product, or service. In that case, which of these is (are) appropriate?
I. Engaging in a discernment based interview in which you elicit the client or donor's life story
II. Engaging in a generative conversation in which the client or donor has a mountaintop experience or transformational insig ht - CORRECT ANSWER-neither
"Bob, what is in the box?" When asked that by a life coach, why was that question so challenging?
I. Bob was raised by his mother to take over the family business and make it a success and he grew up with a strong religious orientation
II Bob felt he could only have one highest value, either worldly success or success by the standards of his faith - CORRECT ANSWER-BOTH
"Commit to asking more and better questions. Pause and absorb the answers. Embrace a beginner's mind. Hear without listening for a solution. Let time stand still.... In
the final hours, human connection is all that matters. That is legacy." Scott Fithian wrote that. Which quotation or quotation below say or says much the same as what
Scott says?
I. "When someone is thinking around us, much of the quality of what we are hearing will be our effect on them." (Nancy Kline).
II. "Listen with mindfulness, so that your thoughts and emotions pass like clouds across the sky." (Patricia Angus.) - CORRECT ANSWER-Both
"Family governance" addresses wealth across generations. Which practice or practices are commonly found in families whose wealth has remained intact or grown over
many generations, say, five or six?
I. A family constitution
II. A family council holding regular family meetings - CORRECT ANSWER-Both
"Great life, great wife, but my life? My wife?" A man who feels that way is likely in what "predictable crisis of adult life?" - CORRECT ANSWER-Midlife crisis
"In fact, the quality of our attention determines the quality of other people's thinking. Attention, driven by deep respect and genuine interest, and without interruption, is the
key to a Thinking Environment. Attention is that powerful. It generates thinking. It is an act of creation." That is from Nan cy Kline. Who else in this course would be likely to
agree, or to say similar things?
I. Carl Rogers
II. Otto Scharmer - CORRECT ANSWER-Both
"Operation successful, patient died." Let us say your client or donor has a perfect estate plan in which no estate taxes are paid, even though tens or hundreds of millions
of dollars transfer to heirs. Yet a generation later the heirs are miserable, most of the money has been wasted, and the third generation is back to "shirtsleeves," with no
inheritance. From this observation, the authors in this assignment draw all of these conclusions, EXCEPT
A.Plans on paper matter, but so does how well those plans are executed over the generations
B.How plans are executed will depend on how well heirs are mentored, educated, parented, coached and trained
C.Family governance, including family council, family fund or bank, and a formal process of developing procedures and practices drawn from family vi sion and principles
are all important, as important as tax planning
D.Addressing human issues is inappropriate on a planning team, - CORRECT ANSWER-Addressing human issues is inappropriate on a planning team, since these
issues are personal and private and do not often admit of solutions
"The law of unintended consequences." With respect to multi-generational planning, which example or examples below illustrate(s) that law with respect to trusts?
I. Client asks for tax minimization, protection of assets, and a secure income for life for heirs. Advisors puts in place a trust that meets these goals. Heirs decide never to
work, and frequently complain that the trust is more a curse than a blessing.
II. Client asks that her heir be set up for life in a way that discourages him from leading an unproductive life. The advisor sets up a trust that makes distributions to cover
health, education, maintenance, support. Under "maintenance" the trust is instructed to pay for the heir's wedding. The heir marries and divorces his wife every year, in
order to have a lavish party at a destination resort.
A. I. only
B. II. only
C. Both I. and II.
D. Neither I. nor II. - CORRECT ANSWER-BOTH
"The Power to Produce Wonders: The Value of Family Philanthropy," from the National Center for Family Philanthropy, 2010, says that among the reasons to do family
philanthropy is that it helps children develop a "view outside the airport."
Which statement(s) below is (are) consistent with the meaning of that remark?
I. Wealthy children lead privileged lives and need to see how others who are less fortunate live.
II. Wealthy children are themselves "at risk" in that they may grow up with limited vision and without empathy for those in other walks of life. - CORRECT ANSWER-BOTH
"The richness of spirit that inspires sincere generosity and philanthropic commitment must thrive in the world of privilege, money, and power" (some might say in spite of
it). So says the study by the National Center for Family Philanthropy. Implicit in this remark are all of the elements below, EXCEPT:
A. Sincere generosity is a sign of a rich spirit.
B. Richness of spirit may not thrive in a world of privilege, money, and power.
C. Richness of spirit, some would say, is less likely to be found among those who have great wealth and power than among peop le of more ordinary means.
D. The wealthy are better able, than is the general public, to develop a richness of spirit because the wealthy have the means to do so, via private schools, tutors, and
philanthropy and other resources unavailable to those of moderate means. - CORRECT ANSWER-The wealthy are better able, than is the general public, to develop a
richness of spirit because the wealthy have the means to do so, via private schools, tutors, and philanthropy and other resou rces unavailable to those of moderate means.
, "The urgent challenges - or threats our shared community now faces, the choices it must make, and the hope to which we can aspire. This part of the pu blic narrative
brings the story up to date, showing why now is the crucial choice point in the life of the community." What "story" (within the public narrative) is being described here? -
CORRECT ANSWER-The story of now
"Whose money is it?" That question, about the money inside a family foundation, is raised by the National Center for Family P hilanthropy study. Which statement or
statements below draw out the meaning of that question?
I. The family made the money and may control the foundation; in that sense it is "their money"
II. The foundation is established by law to serve the public interest, therefore the money belongs to the community it serves. - CORRECT ANSWER-BOTH
100X. What does that motto mean to Bob Buford? - CORRECT ANSWER-Be fruitful 100 times over
A 78 year old is meandering in a conversation with David Solie. She mentions so many names, places, starts so many stories and finishes none, yet there is an urgency
in the voice. Her mind is shuttling at top speed as if weaving a tapestry and unweaving it. Which statements or statement bel ow apply, in the view of Solie?
I. The woman is engaging in life review.
II. If listened to without advice or judgement, she may discover in her own story her own organic legacy. - CORRECT ANSWER-Both
A discernment based advisor will likely do the following:
I. Use open ended questions, followed by probing, closed ended questions
II. Confirm understanding before moving ahead - CORRECT ANSWER-BOTH
A good discovery/agreement conversation for a philanthropic client or donor should include which of these?
I. Where do you want an impact?
II. When do you want to have an impact? - CORRECT ANSWER-Both
A New Yorker cartoon shown in the lecture for assignment on identity and the adult life cycle shows a dignified, middle aged man in a suit, telling a distraught looking
woman who sits on his couch, "Thank you for sharing your deepest feelings. Remember I am your attorney." In your best judgement, what is the course author meaning
to suggest, about deep listening and our respective seats at the planning table, by including this cartoon?
I. Professionals should listen well
II. We professionals must all respect the limits of our professional roles and responsibilities - CORRECT ANSWER-Both
A saying among consultative sales trainers is this: "Prescription before diagnosis is malpractice." Which of the processes below would be "malpractice" by that definition?
I. 1) Establish and define the advisor-client relationship, 2) determine goals and gather data, 3) analyze and evaluate the data, 4) develop and present a plan, 5)
implement the plan, 6) monitor the plan
II. 1) Intuit the client or donor's needs, 2) run gift or sales concept, 3) make appointment, 4) present concept, 5) close or ask, 6) answer objections and close - CORRECT
ANSWER-1) Intuit the client or donor's needs, 2) run gift or sales concept, 3) make appointment, 4) present concept, 5) close or ask, 6) answer objections and close
Above the line planning addresses which of these?
(A) The "why" of planning
(B) The "how" of planning
(C) The tools of planning
(D) The cost of planning - CORRECT ANSWER-The "why" of planning
Above the line questions include which of these?
I. "What keeps you awake at night?"
II. "Who is the beneficiary of your IRA?" - CORRECT ANSWER-I. "What keeps you awake at night?"
According to the 2013 US Trust Survey of The Philanthropic Conversation, all of these were among the top four things wealthy clients are concerned about with respect to
their giving, EXCEPT
A. Having enough for themselves
B. Gift may not be used wisely
C. Lack of connection to the charity
D. Fear that gift will lead to being asked for more money from others - CORRECT ANSWER-Having enough for themselves
According to the National Center for Family Philanthropy study, what is "generally considered the greatest challenge to be fa ced" by multi-generational family
philanthropy? - CORRECT ANSWER-Passing on the stewardship of the family philanthropy across generations
All of the following considerations for giving are mentioned in Bill Wallace's Remarks to Bethesda Country Club, with regard to his family philanthropy, EXCEPT
(A) Honor parents
(B) Give back to a school from which he had gained much
(C) Feel satisfaction in doing the right thing
(D) Reduce taxes - CORRECT ANSWER-Reduce taxes
All of these are good descriptions of "grassroots grantmaking," EXCEPT
(A) Grantmaking in our own backyard by getting personally involved with the recipients of the gift and relying on them, as leaders i n their own right, to get things done
(B) Grantmaking by walking around
(C) Grantmaking in a local context, with deep local knowledge, and a personal commitment to life in that community
(D) Grantmaking without a real plan for how the money will produce a good outcome - CORRECT ANSWER-Grantmaking without a real plan for how the money will
produce a good outcome
All of these are good descriptions of "grassroots grantmaking," EXCEPT
(A) Grantmaking in our own backyard by getting personally involved with the recipients of the gift and relying on them, as le aders in their own right, to get things done
(B) Grantmaking by walking around
(C) Grantmaking in a local context, with deep local knowledge, and a personal commitment to life in that community
(D) Grantmaking without a real plan for how the money will produce a good outcome - CORRECT ANSWER-Grantmaking without a real plan for how the money will
produce a good outcome
All of these are included among the eight domains of the financial planner's role, as defined by the CFP Board, EXCEPT
A. Develop recommendations
B. Communicate recommendations
C. Monitor recommendations after they have been implemented
D. Assess social impact of any charitable recommendations - CORRECT ANSWER-Assess social impact of any charitable recommendations
All of these shortfalls or gaps can be determined by projecting the client's financial situation forward with financial planning software, EXCEPT
(A) Gap between desired social impact and likely result of gift
(B) Gap in money needed at retirement
(C) Gap in money needed by survivors at death of breadwinner
(D) Gap between money needed at disability and actual income if disabled - CORRECT ANSWER-Gap between desired social impact and likely result of gift
Among the financial planning industry trends cited by Craig Lemoine, are each of these, EXCEPT:
a. Boomer quest for meaning and impact
b. Increase in dual-income families
c. Volatility of financial conditions
d. Evolving tax environment - CORRECT ANSWER-Boomer quest for meaning and impact
As a young rising star in business, building Buford Cable Television, Bob Buford says his orientation was "up and to the right." What is the best paraphrase? - CORRECT
ANSWER-He was oriented to making his net worth grow, as on a chart, upwards and to the right.
As advisors move up from subject matter expert, to subject matter expert plus knowledge of affiliated field, to valuable reso urce, to trusted advisor, what happens to
breadth of of issues addressed, and to depth of relationship?
I. Breadth of issues addressed decreases
II. Depth of relationship increases - CORRECT ANSWER-II. Depth of relationship increases
