ORION SERIES 65 UNIT 5 EXAM
QUESTIONS AND ANSWERS (VERIFIED
AND UPDATED)
In a trust account, the person who makes the account management decisions is the:
A) beneficiary.
B) non-trustee custodian.
C) investment adviser representative.
D) trustee. - ANS D) trustee
a legal entity that designates a person (the trustee) to manage the trust's assets for the benefit
of another person (the beneficiary or beneficial owner). - ANS trust
A limited liability company is
A) an insurance company
B) traded on major exchanges
C) a company with tax consequences similar to a partnership
D) a limited partnership - ANS C) a company with tax consequences similar to a partnership
a form of business entity in which the shareholders (called members) are taxed individually at
their respective tax rates as is the case in a partnership. - ANS limited liability company (LLC)
@2026/2027 ALLRIGHTS RESERVED.
, A professional tennis player comes to you seeking advice on setting up a trust. She is interested
in giving to charity and also wants discretion as to when income is distributed to the
beneficiaries, her parents. Which trust do you advise she use?
A) Charitable lead trust.
B) Simple trust.
C) Charitable remainder trust.
D) Complex trust. - ANS D) complex trust
Assets that might be found on a family balance sheet include:
I. car loan.
II. gold watch.
III. Keogh plan.
IV. salary. - ANS II and III
The Jones family has scheduled an initial visit with a financial planner. Mr. Jones has an annual
salary of $70,000 and this is their first attempt at financial planning. Which of the following
should be the first step taken by the financial planner?
A) Establish an emergency fund.
B) Pay off credit card debt.
C) Determine a reasonable fee for designing the plan.
D) Set goals and dates for reaching them. - ANS A) Establish an emergency fund.
If a new client has $200,000 to invest and wants to retire in 15 years, which of the following
client information is least necessary for an adviser to recommend a suitable investment
program?
A) The age of the client.
B) The amount of income he requires for his retirement years.
C) Current income and cash flow requirements.
D) Tolerance toward risk. - ANS C) Current income and cash flow requirements.
@2026/2027 ALLRIGHTS RESERVED.
QUESTIONS AND ANSWERS (VERIFIED
AND UPDATED)
In a trust account, the person who makes the account management decisions is the:
A) beneficiary.
B) non-trustee custodian.
C) investment adviser representative.
D) trustee. - ANS D) trustee
a legal entity that designates a person (the trustee) to manage the trust's assets for the benefit
of another person (the beneficiary or beneficial owner). - ANS trust
A limited liability company is
A) an insurance company
B) traded on major exchanges
C) a company with tax consequences similar to a partnership
D) a limited partnership - ANS C) a company with tax consequences similar to a partnership
a form of business entity in which the shareholders (called members) are taxed individually at
their respective tax rates as is the case in a partnership. - ANS limited liability company (LLC)
@2026/2027 ALLRIGHTS RESERVED.
, A professional tennis player comes to you seeking advice on setting up a trust. She is interested
in giving to charity and also wants discretion as to when income is distributed to the
beneficiaries, her parents. Which trust do you advise she use?
A) Charitable lead trust.
B) Simple trust.
C) Charitable remainder trust.
D) Complex trust. - ANS D) complex trust
Assets that might be found on a family balance sheet include:
I. car loan.
II. gold watch.
III. Keogh plan.
IV. salary. - ANS II and III
The Jones family has scheduled an initial visit with a financial planner. Mr. Jones has an annual
salary of $70,000 and this is their first attempt at financial planning. Which of the following
should be the first step taken by the financial planner?
A) Establish an emergency fund.
B) Pay off credit card debt.
C) Determine a reasonable fee for designing the plan.
D) Set goals and dates for reaching them. - ANS A) Establish an emergency fund.
If a new client has $200,000 to invest and wants to retire in 15 years, which of the following
client information is least necessary for an adviser to recommend a suitable investment
program?
A) The age of the client.
B) The amount of income he requires for his retirement years.
C) Current income and cash flow requirements.
D) Tolerance toward risk. - ANS C) Current income and cash flow requirements.
@2026/2027 ALLRIGHTS RESERVED.
