Question

QUESTION 53

1. One of your customers is expecting a large amount of passive income for the next few years. Which of the following investments would offset the largest amount of passive income?

   		Equipment leasing
   		Oil and gas exploratory
   		Undeveloped land purchasing
   		Real-estate income

1 points   

QUESTION 54

1. If the owner of a variable annuity dies during the accumulation phase, the death benefit will be paid to

   		the designated beneficiary
   		the IRS
   		the insurance company
   		the account holder's estate

1 points   

QUESTION 55

1. Which of the following are characteristics of preferred stock?

   I. A fixed-rate of return

   II. Priority claim to assets upon dissolution when compared to common stock

   III. A fixed maturity date

   IV. A priority claim to dividends over common stock of the same company

   		I, II, and IV
   		I, II, and III
   		II, III, and IV
   		I, III, and IV

1 points   

QUESTION 56

1. Principals are responsible for

   		all provided answers are correct
   		handling all complaints
   		approving all accounts
   		approving all trades

1 points   

QUESTION 57

1. Marty would like to invest in securities that generate the greatest current income with only a moderate risk. Which of the following would meet Marty’s goals?

   		Convertible preferred stock
   		AA-rated corporate bonds
   		Common stock of a new company
   		Income bonds

1 points   

QUESTION 58

1. Which of the following are exempt transactions?

   I. Private placements

   II. Securities issued by the U.S. government

   III. Municipal bonds

   IV. Intrastate offerings

   		I, II, III, and IV
   		II, III, and IV
   		II and III
   		I and IV

1 points   

QUESTION 59

1. Accredited investors include investors with

   I. a net worth of $1,000,000 excluding primary residence

   II. a net worth of $1,000,000 including primary residence

   III. an annual income of $200,000 or more for the previous two years and expected to make at least $200,000 this year

   IV. an annual income of $300,000 or more for the previous three years and expected to make at least $300,000 this year

   		I and IV
   		II and IV
   		I and III
   		II and III

1 points   

QUESTION 60

1. Nonqualified plans include

   I. deferred compensation plans

   II. payroll deduction plans

   III. 457 plans

   		I, II, and III
   		I and III
   		I and II
   		II and III

1 points   

QUESTION 61

1. A corporation has filed a registration statement with the SEC. If the commission finds that the issuing corporation has included untrue statements in its registration statement, the commission would issue a

   		halt order
   		a cease-and-desist letter
   		a letter of delay
   		stop order

1 points   

QUESTION 62

1. Mutual funds must send customer account statements to investors a minimum of

   		once a year
   		once every six months
   		once every three months
   		once a month

1 points   

QUESTION 63

1. One of your customers would like to purchase a preferred stock that would help him reduce inflation risk. Which of the following types of preferred stock would you recommend?

   		Participating
   		Convertible
   		Cumulative
   		Noncumulative

1 points   

QUESTION 64

1. Due to an economic downturn, a corporation has decided to file for bankruptcy and is going to liquidate its assets. Place in order (from highest priority to lowest priority) how the following entities will be paid.

   I. General creditors

   II. Common stockholders

   III. Subordinated debenture holders

   IV. Unpaid workers

   		I, II, III, IV
   		IV, III, II, I
   		III, IV, II, I
   		IV, I, III, II

1 points   

QUESTION 65

1. One of your customers owns 1000 shares of DIM common stock at $24. DIM declares a 20 percent stock dividend. On the ex-dividend date, she will own

   I. 1000 shares

   II. 1200 shares

   III. stock at $20 per share

   IV. stock at $24 per share

   		I and IV
   		I and III
   		II and IV
   		II and III

Answer 1

this is the situation of the multiple questions are given here and any of the questions are not related to each other that means they are not a sub part of any common question. hence in such case cheeg's policy says to attempt only first Question given and i did the same.

QUESTION 53

Oil and gas drilling

Passive income can only be sheltered by passive loss. Oil and gas drilling programs allocate the majority of investment dollars to drilling. These are intangible drilling costs (IDCs), which are 100% deductible when drilling occurs.