BUSI 352 Final Exam Answers Liberty University Answers | Rated A+
A good financial planning report must include an analysis of all 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 - (answer)C. Why you failed previously
Usual financial planning goals include the following except:
A. retirement funding
B. Current lifestyle
C. Career planning
D. Estate planning - (answer)C. Career Planning
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 - (answer)B. Turnover - when and how the client will sell
certain investments
All 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 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 - (answer)A. taxes add to the cost
of an investment and slow progress toward the client's goals
Which of the following is true regarding the contends of the financial plan?
,BUSI 352 Final Exam Answers Liberty University Answers | Rated A+
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 - (answer)D. The plan should have a
discussion of how to achieve goals
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 - (answer)D. Establish living wills
Which of the following is true regarding risk?
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 - (answer)C. Attitudes about risk
are likely to change over a person's lifetime
Which of the following statements is true regarding financial 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 - (answer)C. After they have been identified, they
should be prioritized
Which of the following is true regarding developing a financial plan?
A. this involves budgeting income and expenses
,BUSI 352 Final Exam Answers Liberty University Answers | Rated A+
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 - (answer)A.
this involves budgeting income and expenses
Which of the following 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 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 - (answer)B. income not
allocated to maintain a person's standard of living should be allocated to other financial objectives
Which of the following is true regarding financial security?
A. financial security is based on absolute wealth or income
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 - (answer)C. a pension plan left by a
decedent to a grandchild may retain less than a quarter of its value
Which of the following 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 by deferring income
D. It is not possible to transfer wealth through generations' tax free - (answer)A. high tax brackets
indicate planning opportunities
Which of the following is NOT part of the definition of an Investment Advisor as defined by the
Investment Advisers Act of 1940 (the Act)?
, BUSI 352 Final Exam Answers Liberty University Answers | Rated A+
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 - (answer)C. holds a CFP or series 7 license
The Act defines compensation as
A. commission only
B. fees only
C. receipt of any economic benefit
D. 12 (b) 1 fees only - (answer)C. receipt of any economic benefit
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 U.S. treasury obligations
D. local attorney who occasionally advises clients about setting up investment accounts for their jury
awards - (answer)B. insurance agent who advises clients about no load mutual funds
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 form ADV) to each client
C. Provide a part I of form ADV to each client
D. provide clients with copies of the adviser's marketing brochure - (answer)B. Deliver a written
disclosure document (such as part II of form ADV) to each client
The anti-fraud provisions of the Act applies to:
A. all investments advisors, even those who are exempt rom registration
B. only those who must register with the SEC or the states
A good financial planning report must include an analysis of all 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 - (answer)C. Why you failed previously
Usual financial planning goals include the following except:
A. retirement funding
B. Current lifestyle
C. Career planning
D. Estate planning - (answer)C. Career Planning
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 - (answer)B. Turnover - when and how the client will sell
certain investments
All 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 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 - (answer)A. taxes add to the cost
of an investment and slow progress toward the client's goals
Which of the following is true regarding the contends of the financial plan?
,BUSI 352 Final Exam Answers Liberty University Answers | Rated A+
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 - (answer)D. The plan should have a
discussion of how to achieve goals
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 - (answer)D. Establish living wills
Which of the following is true regarding risk?
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 - (answer)C. Attitudes about risk
are likely to change over a person's lifetime
Which of the following statements is true regarding financial 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 - (answer)C. After they have been identified, they
should be prioritized
Which of the following is true regarding developing a financial plan?
A. this involves budgeting income and expenses
,BUSI 352 Final Exam Answers Liberty University Answers | Rated A+
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 - (answer)A.
this involves budgeting income and expenses
Which of the following 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 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 - (answer)B. income not
allocated to maintain a person's standard of living should be allocated to other financial objectives
Which of the following is true regarding financial security?
A. financial security is based on absolute wealth or income
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 - (answer)C. a pension plan left by a
decedent to a grandchild may retain less than a quarter of its value
Which of the following 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 by deferring income
D. It is not possible to transfer wealth through generations' tax free - (answer)A. high tax brackets
indicate planning opportunities
Which of the following is NOT part of the definition of an Investment Advisor as defined by the
Investment Advisers Act of 1940 (the Act)?
, BUSI 352 Final Exam Answers Liberty University Answers | Rated A+
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 - (answer)C. holds a CFP or series 7 license
The Act defines compensation as
A. commission only
B. fees only
C. receipt of any economic benefit
D. 12 (b) 1 fees only - (answer)C. receipt of any economic benefit
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 U.S. treasury obligations
D. local attorney who occasionally advises clients about setting up investment accounts for their jury
awards - (answer)B. insurance agent who advises clients about no load mutual funds
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 form ADV) to each client
C. Provide a part I of form ADV to each client
D. provide clients with copies of the adviser's marketing brochure - (answer)B. Deliver a written
disclosure document (such as part II of form ADV) to each client
The anti-fraud provisions of the Act applies to:
A. all investments advisors, even those who are exempt rom registration
B. only those who must register with the SEC or the states
