ORION SERIES 65 TEST PAPER 2026
ACCURATE ANSWERS GRADED A+
◉ a legal entity that designates a person (the trustee) to manage the
trust's assets for the benefit of another person (the beneficiary or
beneficial owner). Answer: trust
◉ A limited liability company is
A) an insurance company
B) traded on major exchanges
C) a company with tax consequences similar to a partnership
D) a limited partnership Answer: C) a company with tax
consequences similar to a partnership
◉ a form of business entity in which the shareholders (called
members) are taxed individually at their respective tax rates as is the
case in a partnership. Answer: limited liability company (LLC)
◉ A professional tennis player comes to you seeking advice on
setting up a trust. She is interested in giving to charity and also wants
discretion as to when income is distributed to the beneficiaries, her
parents. Which trust do you advise she use?
A) Charitable lead trust.
B) Simple trust.
C) Charitable remainder trust.
, D) Complex trust. Answer: D) complex trust
◉ Assets that might be found on a family balance sheet include:
I. car loan.
II. gold watch.
III. Keogh plan.
IV. salary. Answer: II and III
◉ The Jones family has scheduled an initial visit with a financial
planner. Mr. Jones has an annual salary of $70,000 and this is their
first attempt at financial planning. Which of the following should be
the first step taken by the financial planner?
A) Establish an emergency fund.
B) Pay off credit card debt.
C) Determine a reasonable fee for designing the plan.
D) Set goals and dates for reaching them. Answer: A) Establish an
emergency fund.
◉ If a new client has $200,000 to invest and wants to retire in 15
years, which of the following client information is least necessary for
an adviser to recommend a suitable investment program?
A) The age of the client.
B) The amount of income he requires for his retirement years.
C) Current income and cash flow requirements.
D) Tolerance toward risk. Answer: C) Current income and cash flow
requirements.
ACCURATE ANSWERS GRADED A+
◉ a legal entity that designates a person (the trustee) to manage the
trust's assets for the benefit of another person (the beneficiary or
beneficial owner). Answer: trust
◉ A limited liability company is
A) an insurance company
B) traded on major exchanges
C) a company with tax consequences similar to a partnership
D) a limited partnership Answer: C) a company with tax
consequences similar to a partnership
◉ a form of business entity in which the shareholders (called
members) are taxed individually at their respective tax rates as is the
case in a partnership. Answer: limited liability company (LLC)
◉ A professional tennis player comes to you seeking advice on
setting up a trust. She is interested in giving to charity and also wants
discretion as to when income is distributed to the beneficiaries, her
parents. Which trust do you advise she use?
A) Charitable lead trust.
B) Simple trust.
C) Charitable remainder trust.
, D) Complex trust. Answer: D) complex trust
◉ Assets that might be found on a family balance sheet include:
I. car loan.
II. gold watch.
III. Keogh plan.
IV. salary. Answer: II and III
◉ The Jones family has scheduled an initial visit with a financial
planner. Mr. Jones has an annual salary of $70,000 and this is their
first attempt at financial planning. Which of the following should be
the first step taken by the financial planner?
A) Establish an emergency fund.
B) Pay off credit card debt.
C) Determine a reasonable fee for designing the plan.
D) Set goals and dates for reaching them. Answer: A) Establish an
emergency fund.
◉ If a new client has $200,000 to invest and wants to retire in 15
years, which of the following client information is least necessary for
an adviser to recommend a suitable investment program?
A) The age of the client.
B) The amount of income he requires for his retirement years.
C) Current income and cash flow requirements.
D) Tolerance toward risk. Answer: C) Current income and cash flow
requirements.
