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SERIES 66 FINAL 10 MISSED QUESTIONS
WITH COMPLETE ANSWERS.
1. The advantage of a limited partnership business structure as opposed to a corporate business structure
is:: Flow through of gain and loss
2. An investment adviser that uses a "bottom up" approach to portfolio man- agement will:: select
specific investments based on each investment's ability to generate exceptional growth, regardless of
the economic outlook
3. Top down approach: a method of investing that looks at the overall economy to identify sectors
that appear to have the best growth potential; once identified,
investments are made in those specific sectors in the hopes of achieving the greatest potential return.
4. Bottom up approach: a method of investing that looks for specific companies that are likely to have
exceptional performance, regardless of overall economic conditions. Once these companies are selected,
then the potential impact of overall economic conditions would be considered prior to making an
investment.
5. Limited Partnerships: commonly known as a direct participation program ("DPP") or tax shelter,
this is a partnership that permits the gains and losses of the business to flow through from the
program to the investors (known as limited partners) untaxed. The partners include the items of
income and loss on their
individual tax returns, and hence directly participate in the results of the enterprise.
6. Direct participation program (DPP): commonly known as a limited partnership or tax shelter, this is a
partnership that permits the gains and losses of the business to flow through from the program to the
investors (known as limited partners) without the partnership having any tax liability. The partners include
the items of income and loss on their individual tax returns, and hence directly participate in the results of
the enterprise.
7. Which of the following is NOT included in the calculation of net present value of a 10-year
fixed rate non-callable bond?: Volatility
8. Under the Uniform Securities Act, for an agent to share in the gain and loss of a customer account,
which statements are TRUE?: The broker-dealer must approve the arrangement & Any sharing
percentage must be proportionate to capital contributed
9. Under the Investment Advisers Act of 1940, the use of a testimonial in an advertisement by a federal
covered adviser is:: permitted only if it is prominently disclosed whether the promoter was compensated
and whether the promoter is a client of the adviser
10. Which of the following statements describes a universal life insurance policy?: The policy owner
can change the schedule of premium payments, flexible
11. An investment adviser includes a list of its "Top Ten" recommendations made over the last year in
its advertising. Under the Investment Advisers Act of 1940, which statement is TRUE?: This is a
violation of the Act and is fraudulent
12. All of the following are deductible from a taxable estate EXCEPT:: The difference between cost
basis and fair market value for depreciated assets owned by the estate
SERIES 66 FINAL 10 MISSED QUESTIONS
WITH COMPLETE ANSWERS.
1. The advantage of a limited partnership business structure as opposed to a corporate business structure
is:: Flow through of gain and loss
2. An investment adviser that uses a "bottom up" approach to portfolio man- agement will:: select
specific investments based on each investment's ability to generate exceptional growth, regardless of
the economic outlook
3. Top down approach: a method of investing that looks at the overall economy to identify sectors
that appear to have the best growth potential; once identified,
investments are made in those specific sectors in the hopes of achieving the greatest potential return.
4. Bottom up approach: a method of investing that looks for specific companies that are likely to have
exceptional performance, regardless of overall economic conditions. Once these companies are selected,
then the potential impact of overall economic conditions would be considered prior to making an
investment.
5. Limited Partnerships: commonly known as a direct participation program ("DPP") or tax shelter,
this is a partnership that permits the gains and losses of the business to flow through from the
program to the investors (known as limited partners) untaxed. The partners include the items of
income and loss on their
individual tax returns, and hence directly participate in the results of the enterprise.
6. Direct participation program (DPP): commonly known as a limited partnership or tax shelter, this is a
partnership that permits the gains and losses of the business to flow through from the program to the
investors (known as limited partners) without the partnership having any tax liability. The partners include
the items of income and loss on their individual tax returns, and hence directly participate in the results of
the enterprise.
7. Which of the following is NOT included in the calculation of net present value of a 10-year
fixed rate non-callable bond?: Volatility
8. Under the Uniform Securities Act, for an agent to share in the gain and loss of a customer account,
which statements are TRUE?: The broker-dealer must approve the arrangement & Any sharing
percentage must be proportionate to capital contributed
9. Under the Investment Advisers Act of 1940, the use of a testimonial in an advertisement by a federal
covered adviser is:: permitted only if it is prominently disclosed whether the promoter was compensated
and whether the promoter is a client of the adviser
10. Which of the following statements describes a universal life insurance policy?: The policy owner
can change the schedule of premium payments, flexible
11. An investment adviser includes a list of its "Top Ten" recommendations made over the last year in
its advertising. Under the Investment Advisers Act of 1940, which statement is TRUE?: This is a
violation of the Act and is fraudulent
12. All of the following are deductible from a taxable estate EXCEPT:: The difference between cost
basis and fair market value for depreciated assets owned by the estate
