Quiz-summary
0 of 10 questions completed
Questions:
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
Information
Free Practice Questions
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading...
You must sign in or sign up to start the quiz.
You have to finish following quiz, to start this quiz:
Results
0 of 10 questions answered correctly
Your time:
Time has elapsed
You have reached 0 of 0 points, (0)
Categories
- Not categorized 0%
- 1
- 2
- 3
- 4
- 5
- 6
- 7
- 8
- 9
- 10
- Answered
- Review
-
Question 1 of 10
1. Question
Which of the statements are true in regards of joint tenants with rights of survivor ship?
I. Each owners share involved in this account have equal share and is not divided.
II. These accounts typically preferred by investors in committed relationship.
III. Preferred by investors who do not wish their portion to be left to the other owner.
IV. This accounts require that each owner agree on and declare a share in the account.Correct
Each owner’s share in a JTWROS account is equal and is not divided. These accounts are typically preferred by investors in a committed relationship that wish to have their portion of the account pass to the other investor, and combine funds to invest out of convenience rather than a desire to invest more effectively with greater capital.
Incorrect
Each owner’s share in a JTWROS account is equal and is not divided. These accounts are typically preferred by investors in a committed relationship that wish to have their portion of the account pass to the other investor, and combine funds to invest out of convenience rather than a desire to invest more effectively with greater capital.
-
Question 2 of 10
2. Question
Which of the statements hold true in case of a trust account?
I. Ownership of the account is held by a trust which act as a substitute for a legal body
II. This account is an arrangement to control the deceased person’s estate.
III.Transfer of property to the beneficiary is simple in regards of a trust account.
IV. Estates under trust account can surpass probate court.Correct
Trust accounts are those accounts that are owned by a trust that is acting as a legal entity. Trusts are used by investors to simplify the transference of property to beneficiaries after the investor’s death. Estates that are governed by trusts usually avoid probate court altogether and allow more assets to be passed on by avoiding fees associated with probate court.
Incorrect
Trust accounts are those accounts that are owned by a trust that is acting as a legal entity. Trusts are used by investors to simplify the transference of property to beneficiaries after the investor’s death. Estates that are governed by trusts usually avoid probate court altogether and allow more assets to be passed on by avoiding fees associated with probate court.
-
Question 3 of 10
3. Question
Which statement is/are true in regards of qualified domestic relationship orders?
I. Its a court order concerning separation of property post a divorce.
II. A portion of pension plan is allocated to account holder ex-spouse
III.They shift the tax liability
IV. Ex-spouse in any capacity is not liable for tax under this order.Correct
Qualified domestic relations orders (QDROs) concern the division of property following a divorce, specifically the division of a retirement plan. A QDRO is a court order based on a divorce settlement which allots a portion of the retirement or pension plan to family members, ordinarily to the accountholder’s ex-spouse but sometimes also to children or dependents. QDROs are important because they also shift tax liability.
Incorrect
Qualified domestic relations orders (QDROs) concern the division of property following a divorce, specifically the division of a retirement plan. A QDRO is a court order based on a divorce settlement which allots a portion of the retirement or pension plan to family members, ordinarily to the accountholder’s ex-spouse but sometimes also to children or dependents. QDROs are important because they also shift tax liability.
-
Question 4 of 10
4. Question
Which statement is false in regards of sole proprietorship’s account?
I. There is one passive partner in these accounts generally a family member who takes over the account in case of account holder’s death.
II. Advisor’s need to ensure that the investments made are in the best interest as per the clients portfolio.
III. These accounts are treated as individual accounts.
IV. Individual business owners cannot be put under this category.Correct
Incorrect
-
Question 5 of 10
5. Question
Which of these statements is/are true?
I. S corporations doesn’t have a caping on number of membership.
II. LLC’s account’s are limited to 100 shareholders.
III. Shareholders of the S corporations cannot belong to a foreign country.
IV. S corporation’s are limited to 100 shareholders.Correct
S corporations describe companies that are incepted as corporations, but avoid the double taxation of traditional C corporations. Unlike LLCs, S corporations are limited to 100 shareholders, whereas LLCs are not limited with regard to membership. Shareholders of S corporations cannot be nonresident aliens.
Incorrect
S corporations describe companies that are incepted as corporations, but avoid the double taxation of traditional C corporations. Unlike LLCs, S corporations are limited to 100 shareholders, whereas LLCs are not limited with regard to membership. Shareholders of S corporations cannot be nonresident aliens.
-
Question 6 of 10
6. Question
Income gained under which head is not subjected to double taxation?
I. S corporation
II. C corporation
III. Limited Liability Company
IV. Sole PropritershipCorrect
Incorrect
-
Question 7 of 10
7. Question
Which statement is/are true in regards of current income?
I. Strategies for obtaining capital growth are inherently riskier and most do not provide income.
II. Investors most likely to need current income are investors who have a large amount of capital saved and need money to meet daily expenses.
III.This segment is best suited for people who are retired or disabled persons who are not physically able to earn income.
IV. This segment is best suited for young people.Correct
Investors most likely to need current income are investors who have a large amount of capital saved or inherited and need money to meet daily expenses, but who prefer not to spend the principal of the investments. This may range from retirees to disabled persons who are not physically able to earn income.
Incorrect
Investors most likely to need current income are investors who have a large amount of capital saved or inherited and need money to meet daily expenses, but who prefer not to spend the principal of the investments. This may range from retirees to disabled persons who are not physically able to earn income.
-
Question 8 of 10
8. Question
Which of these statement is/are true?
I. Young investors with longer time horizons most likely to have capital growth as an investment objective.
II. Strategies for obtaining capital growth are inherently riskier than fixed-income assets.
III. Securities best suited to provide current income are those in the fixed-income markets, such as government debt issues, corporate debt issues.
IV. Capital growth strategies just like fixed income assets provide income.Correct
Incorrect
-
Question 9 of 10
9. Question
Which statement stands false for a speculative investment?
I. Preferred by unsophisticated investors.
II. Preferred by sophisticated investors.
III. Less potential to yield high returns.
IV. Such risky investments include highly unstable stocks, high- yield bonds , options, and commodities futures.Correct
Unsophisticated investors should be willing to lose all of the investment in speculative investments, and if this will significantly affect the investors’ financial health, advisors should stringently advise against such investments. Clients that are most likely to have speculation as a financial goal are sophisticated investors.
Incorrect
Unsophisticated investors should be willing to lose all of the investment in speculative investments, and if this will significantly affect the investors’ financial health, advisors should stringently advise against such investments. Clients that are most likely to have speculation as a financial goal are sophisticated investors.
-
Question 10 of 10
10. Question
Which statement’s holds true for depositor in retirement plan?
I. Client is looking for a riskier investment option.
II. Client need such investments which can yield them income for the rest of their lives.
III. Client needs investment which are stable in nature.
IV. Client wants investment that look after there families post there demise.Correct
Clients who have reached the retirement stage rely on their investments to provide them with income for the rest of their lives. The securities should not only provide income but also be stable, because they need to preserve their capital to continue to provide income as long as possible. The advisor should also be sure that retirees have adequate life insurance to provide for their families after their demise.
Incorrect
Clients who have reached the retirement stage rely on their investments to provide them with income for the rest of their lives. The securities should not only provide income but also be stable, because they need to preserve their capital to continue to provide income as long as possible. The advisor should also be sure that retirees have adequate life insurance to provide for their families after their demise.