Home Study FPQP® Thorough Review and Complete
Answers; Ace Your First Attempt Updated 2025/2026
In order to build equity, one must -- the asset. - correct answer Own the asset.
(Not rent or lease it).
Fair Credit Billing Act - correct answer Established procedures to follow when resolving
account billing errors.
(A billing error complaint must be made within 60 days after the bill date).
Chapter 7
(Bankruptcy) - correct answer Straight or Full bankruptcy.
Immediate liquidation of available assets and discharges (cancellation) of remaining
assets.
Debts not excused = allimony, child support, education loans.
Can only file for Chapter 7 once every 8 years.
Should be a last resort!
Chapter 13
(Bankruptcy) - correct answer Wage earner's plan.
For individuals (not businesses).
Designed for debtors who want to pay off their debts under a court supervised plan.
Criteria = regular/stable income, disposable income.
Limited Partnership - correct answer Liability is typically restricted to only the
investment in the partnership.
, Partnership - correct answer At least 2 owners.
A written agreement between the partners sepcifying responsibilitiesof each partner.
Can be paired with an LLC
C Corporations - correct answer Taxable under Subchapter C of the Internal Revenue
Code.
Do not permit flow-through tax treatment to the shareholder-owners.
Subject to double taxation.
Inherently limited liability.
Can be paired with LLC.
S Corporations - correct answer Can elect not to be taxed as a corporation, which
premits flow-through income treatment to the shareholder.
Taxed as a partnership.
Can be paired with LLC.
LLC - correct answer State registered.
Members.
Insurance Management - correct answer process of deciding how much and what kind
of insurance to buy.
4 Components of Negligence (reckless) - correct answer 1. Existance of legal duty
2. Failure to perform a legal duty
3. Actual damage is caused
4. Proximate cause is established
Contibutory Negligence - correct answer if the injured party contributed in any way to
injury, they cannot collect damages
Answers; Ace Your First Attempt Updated 2025/2026
In order to build equity, one must -- the asset. - correct answer Own the asset.
(Not rent or lease it).
Fair Credit Billing Act - correct answer Established procedures to follow when resolving
account billing errors.
(A billing error complaint must be made within 60 days after the bill date).
Chapter 7
(Bankruptcy) - correct answer Straight or Full bankruptcy.
Immediate liquidation of available assets and discharges (cancellation) of remaining
assets.
Debts not excused = allimony, child support, education loans.
Can only file for Chapter 7 once every 8 years.
Should be a last resort!
Chapter 13
(Bankruptcy) - correct answer Wage earner's plan.
For individuals (not businesses).
Designed for debtors who want to pay off their debts under a court supervised plan.
Criteria = regular/stable income, disposable income.
Limited Partnership - correct answer Liability is typically restricted to only the
investment in the partnership.
, Partnership - correct answer At least 2 owners.
A written agreement between the partners sepcifying responsibilitiesof each partner.
Can be paired with an LLC
C Corporations - correct answer Taxable under Subchapter C of the Internal Revenue
Code.
Do not permit flow-through tax treatment to the shareholder-owners.
Subject to double taxation.
Inherently limited liability.
Can be paired with LLC.
S Corporations - correct answer Can elect not to be taxed as a corporation, which
premits flow-through income treatment to the shareholder.
Taxed as a partnership.
Can be paired with LLC.
LLC - correct answer State registered.
Members.
Insurance Management - correct answer process of deciding how much and what kind
of insurance to buy.
4 Components of Negligence (reckless) - correct answer 1. Existance of legal duty
2. Failure to perform a legal duty
3. Actual damage is caused
4. Proximate cause is established
Contibutory Negligence - correct answer if the injured party contributed in any way to
injury, they cannot collect damages
