BUSI 352 -FINAL UPDATED EXAM
2025 COMPLETE MULTIPLE CHOICE
QUESTION BANK WITH VERIFIED
ANSWERS,DETAILED
EXPLANATIONS AND 100% PASS
GUARANTEE (LATEST EDITION)
Which of the following is true regarding the contends 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 -
THE CORRECT 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 - THE CORRECT 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 - THE CORRECT 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 - THE CORRECT
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
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 - THE CORRECT 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 - THE CORRECT 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 - THE CORRECT 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 - THE CORRECT 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)?
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 - THE CORRECT 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 - THE CORRECT 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
2025 COMPLETE MULTIPLE CHOICE
QUESTION BANK WITH VERIFIED
ANSWERS,DETAILED
EXPLANATIONS AND 100% PASS
GUARANTEE (LATEST EDITION)
Which of the following is true regarding the contends 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 -
THE CORRECT 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 - THE CORRECT 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 - THE CORRECT 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 - THE CORRECT
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
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 - THE CORRECT 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 - THE CORRECT 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 - THE CORRECT 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 - THE CORRECT 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)?
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 - THE CORRECT 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 - THE CORRECT 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
