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1. whichmismnormallymindicatedmwhenmGNPmhasmdecreasedmformtwomconsecutivemquarters?m-
mCORRECTmANSWERmrecession
2. themopportunitymtombuymunissuedmcommonmstockmatmamspecifiedmprice,movermamlongmperio
dmofmtime,mismprovidedmtomthemholdermofma:m-mCORRECTmANSWERmwarrant
3. whichmofmthemfollowingmallowsmshareholdersmtompurchasemadditionalmstockmbeforemthemco
mpanymoffersmsharesmtomthemgeneralmpublic?m-mCORRECTmANSWERmpre-emptivemright
4. alfread,mamdivorcee,mdiesmwithmamvalidmwillmleavingm'mymentiremestatemtommymissue,mpermsti
rpesmwithmthemrightmofmrepresentationminmeachmgeneration.'mhemismsurvivedmbymhismfatherm
F,mtwomgrandchildrenmAmandmBmbymhismdeceasedmdaughter,mandmonemgrandchildmCmbymhism
deceasedmson.mwhichmofmthemfollowingmrepresentsmthemAPPROPRIATEmdistribution?m-
mCORRECTmANSWERmCmreceivesmmoremthanmAmormB
5. Dr.mJonesmpurchasesmam$5,000,000mlifeminsurancempolicy.monmthemadvicemofmhermattorney,m
shemtransfersmallmincidentsmofmownershipminmthempolicymtomanmirrevocablemtrustmformthemb
enefitmofmhermchildrenmthemfollowingmyear.mDr.mJonesmdiesmtwomyearsmlater,mandmtheminsura
ncemproceedsmarempaidmtomthemtrust.mWhatmaremthemestatemtaxmconsequencesmtomDr.mJone
s'mestate?m-mCORRECTmANSWERmInsurancemproceedsmaremincludedminmhermestate
6. medicalmexpensesmformamdecedentmmaymbemdeducedmonmwhichmofmthemfollowingmreturnsm-
mCORRECTmANSWERmeithermam706morm1040
7. amclientmdies.maftermprepartionmofmthemdecedent'smfinalm1040mincomemtaxmreturn,myoumnot
icemthatmthemclientmhasmanmunusedmcharitablemcontributionmcarrymforwardmofm$10,000.mW