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BUSI 352 Exam 1 Verified Study Questions And Answers
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BUSI 352 Exam 1 Verified Study Questions And Answers
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BUSI 352 Exam 1 Verified StudyQuestions And 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 ANSWERS c
Usual financial planning goals include the following except
a. retirement funding
b. current lifestyle
c. career planning
d. estate planning CORRECT ANSWERS 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 ANSWERS 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
ANSWERS 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 ANSWERS 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 ANSWERS 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
ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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
ANSWERS 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 ANSWERS c
The Act defines compensation as
a. commission only
b. fees only
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