BUSI 352 Exam 1 Prep Actual Questions With 100% Verified Answers.

A good financial planning report must include an analysis of all of the following except a. where you are now b. where you want to be c. why you failed previously d. how to reach your goals - correct answer c Usual financial planning goals include the following except a. retirement funding b. current lifestyle c. career planning d. estate planning - correct answer c A client's formal financial planning report that summarizes all 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 - correct answer b which of the following is true regarding the types of financial problems clients will face in their lives a. taxes add to the cost of an investment 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 assets to children or young adults d. psychological comfort has no place in the financial planning process - correct answer a which of the following is true regarding the contents of the 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 - correct answer d The six steps in the financial management process outlined by the authors include the following except: a. Establish goals b. Collect data c. Measure performance d. Establish living wills - correct answer d Which of the following is true regarding risk? a. Attitudes toward risk are easy to measure b. defining the nature of risk is objective for each person c. attitudes about risk are likely ot change over a person's lifetime d. risk attitudes are due to factors that are relatively easy to deal with - correct answer c Which of the statements is true regarding financial objectives? a. good financial objectives are stated in aspirational terms b. all financial objectives have a short time horizon c. after they have been identified they should be prioritized d. once identified they do not need to be revisited - correct answer c Which is true regarding developing a financial 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 - correct answer a Which is true regarding a person's standard of living? a. maintaining a person's lifestyle should generally take a minority of a person's resources b. income not allocated to maintaining 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 - correct answer b Which is true regarding taxes? 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 through deferring income d. it is not possible to transfer wealth through generations' tax free - correct answer a Which is NOT part of the definition of an Investment Advisor as defined by the Investment Advisors 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 - correct answer c The Act defines compensation as a. commission only b. fees only c. receipt of any economic benefit d. 12 (b) 1 fees only - correct answer c Which of the following is NOT exempt from the definition of an 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 US Treasury obligations d. local attorney who occasionally advises clients about setting up investment accounts for their jury awards - correct answer b The "brochure rule" requires that the investment adviser do which of the following? a. provide the client with an audited financial statement of the adviser's net worth b. deliver a written disclosure document (such as Part II of ADV) to each client c. provide a copy of part I of form ADV to each client d. provide clients with copies of the adviser's marketing brochure - correct answer b The anti-fraud provisions of the Act applies to a. all investement advisors even those who are exempt from registration b. only those who must register with SEC or states c. only situations where security transactions take place d. only advisors of pension plans - correct answer a Which of the following statements about the definition of "security" under the Investment Advisor Act is CORRECT? a. the act defines the term "security" in the broadest possible fashion b. the act defines the term narrowly, to include only stocks, bonds, and Certificates of Deposit c. The SEC periodically hods hearing to define the term d. the definition is left to the NASD - correct answer a All are disciplinary actions that the CFP Board may take against a financial advisor who is in violation of the Code of Ethics EXCEPT: a. private censure b. lawsuit against the advisor in Federal Court c. public letter of admonition d. suspension - correct answer b Which of the uses of the CFP marks are PROHIBITED by the CFP Board? a. Jane Smith is a CFP graduate b. Jane Smith is a CFP