Question 1

Cold calling is generally most prevalent with:

Accepted Answer

A) Product oriented fee-only planners 
B) Product oriented commission-only planners 
C) Product oriented fee and commission planners 
D) Both a and b 
E) Both b and c 
A) Product oriented fee-only planners 
B) Product oriented commission-only planners 
C) Product oriented fee and commission planners 
D) Both a and b 
E) Both b and c B

Question 2

What does the acronym "CRM" stand when used in the expression "CRM software"?

Accepted Answer

A) Customer relationship management 
B) Customer review management 
C) Certified relationship management 
D) Certified review management 
E) None of the above 
A) Customer relationship management 
B) Customer review management 
C) Certified relationship management 
D) Certified review management 
E) None of the above A

Question 3

What is an engagement letter?

Accepted Answer

A) A legal contract that details the understanding between the planner and the client 
B) A informal letter inviting the client to a seminar 
C) A letter formalizing the relation between the financial planner and the broker-dealer 
D) A letter that details the firm's mission statement,which must be sent to every new client 
E) None of the above 
A) A legal contract that details the understanding between the planner and the client 
B) A informal letter inviting the client to a seminar 
C) A letter formalizing the relation between the financial planner and the broker-dealer 
D) A letter that details the firm's mission statement,which must be sent to every new client 
E) None of the above A

Question 4

Which of the following is an area in which financial planners may specialize?

Accepted Answer

A) Income strata 
B) Profession 
C) Products offered 
D) All of the above 
E) Both a and b 
A) Income strata 
B) Profession 
C) Products offered 
D) All of the above 
E) Both a and b

Question 5

The clients' opinion of the planner may depend on:

Accepted Answer

A) The cost of the products offered by the broker-dealer. 
B) The services of the products offered by the broker-dealer. 
C) The overall quality of the broker-dealer. 
D) All of the above. 
E) None of the above 
A) The cost of the products offered by the broker-dealer. 
B) The services of the products offered by the broker-dealer. 
C) The overall quality of the broker-dealer. 
D) All of the above. 
E) None of the above

Question 6

Which of the following designations is often acquired by people with insurance backgrounds?

Accepted Answer

A) ChFC 
B) PFS 
C) CFA 
D) CFP 
E) None of the above 
A) ChFC 
B) PFS 
C) CFA 
D) CFP 
E) None of the above

Question 7

Why should a financial planner volunteer for service in the community?

Accepted Answer

A) It can increase recognition of your name 
B) It can enhance your reputation 
C) It put you in contact with potential clients 
D) Both b and c 
E) All of the above 
A) It can increase recognition of your name 
B) It can enhance your reputation 
C) It put you in contact with potential clients 
D) Both b and c 
E) All of the above

Question 8

When can a subchapter S corporation serve a financial planner well?

Accepted Answer

A) When the planner expects an operating gain in the beginning and does not have yearly income from other sources 
B) When the planner expects an operating loss in the beginning and has yearly income from other sources 
C) When the planner expects an operating gain in the beginning and has yearly income from other sources 
D) When the planner expects an operating loss in the beginning and does not have yearly income from other sources 
E) None of the above 
A) When the planner expects an operating gain in the beginning and does not have yearly income from other sources 
B) When the planner expects an operating loss in the beginning and has yearly income from other sources 
C) When the planner expects an operating gain in the beginning and has yearly income from other sources 
D) When the planner expects an operating loss in the beginning and does not have yearly income from other sources 
E) None of the above

Question 9

Which of the following is a planning organization?

Accepted Answer

A) The Personal Financial Planning Association 
B) The National Financial Planning Association 
C) The National Association of Personal Financial Advisors 
D) Both a and b 
E) Both b and c 
A) The Personal Financial Planning Association 
B) The National Financial Planning Association 
C) The National Association of Personal Financial Advisors 
D) Both a and b 
E) Both b and c

Question 10

A mission statement:

Accepted Answer

A) Is typically several paragraphs long 
B) Is typically several pages long 
C) Is typically no more than a paragraph long 
D) Is typically no more than a sentence long 
E) None of the above 
A) Is typically several paragraphs long 
B) Is typically several pages long 
C) Is typically no more than a paragraph long 
D) Is typically no more than a sentence long 
E) None of the above

Question 11

Why is a career in personal finance planning personally awarding?

Accepted Answer

A) Because of the opportunity most financial planners have to work as an executive in a large financial institution 
B) Because financial planners can make a difference in people's lives 
C) Because of the recognition a financial planner receives for performing a valuable service 
D) All of the above 
E) Both b and c 
A) Because of the opportunity most financial planners have to work as an executive in a large financial institution 
B) Because financial planners can make a difference in people's lives 
C) Because of the recognition a financial planner receives for performing a valuable service 
D) All of the above 
E) Both b and c

Question 12

Which of the following is not an example of a multiservice entity that offers financial planning?

Accepted Answer

A) Insurance firms 
B) Stock brokerage firms 
C) Investment management firms 
D) All of the above are examples 
E) None of the above is an example 
A) Insurance firms 
B) Stock brokerage firms 
C) Investment management firms 
D) All of the above are examples 
E) None of the above is an example

Question 13

Why are other planners a potential significant source of referrals?

Accepted Answer

A) Those from other cities may refer to you when clients move 
B) Planners in your city may find that certain clients are too small 
C) Because other planner can typically provide key personal information about the individual that they refer 
D) Both a and b 
E) Both b and c 
A) Those from other cities may refer to you when clients move 
B) Planners in your city may find that certain clients are too small 
C) Because other planner can typically provide key personal information about the individual that they refer 
D) Both a and b 
E) Both b and c

Question 14

Which of the following explains why many commission-only and fee and commission planners like their affiliation with broker dealers?

Accepted Answer

A) It allows planners to reduce their due diligence on products 
B) It allows planner to pare their record keeping responsibilities 
C) It permits planners them to spend more time performing financial planning 
D) Both a and b 
E) All of the above 
A) It allows planners to reduce their due diligence on products 
B) It allows planner to pare their record keeping responsibilities 
C) It permits planners them to spend more time performing financial planning 
D) Both a and b 
E) All of the above

Question 15

Which of the following statements is accurate?

Accepted Answer

A) Demand for fee-only advice has been growing steadily over the past decade due to its perceived attraction by consumers 
B) At present,most financial advisors call themselves fee-only financial planners 
C) Many people believe fee-only advice will decline in popularity 
D) All of the above 
E) None of the above. 
A) Demand for fee-only advice has been growing steadily over the past decade due to its perceived attraction by consumers 
B) At present,most financial advisors call themselves fee-only financial planners 
C) Many people believe fee-only advice will decline in popularity 
D) All of the above 
E) None of the above.

Question 16

Which of the following is not a requirement that all financial planners should meet?

Accepted Answer

A) An undergraduate degree 
B) A completed specialization in investment management 
C) A planning designation 
D) Practical professional experience in planning 
E) All of the above are requirements 
A) An undergraduate degree 
B) A completed specialization in investment management 
C) A planning designation 
D) Practical professional experience in planning 
E) All of the above are requirements

Question 17

A mission statement:

Accepted Answer

A) Provides the rationale for establishing your business or career 
B) Helps the planner keep their focus 
C) Satisfies regulation requiring such a statement 
D) Both a and b 
E) Both b and c 
A) Provides the rationale for establishing your business or career 
B) Helps the planner keep their focus 
C) Satisfies regulation requiring such a statement 
D) Both a and b 
E) Both b and c

Question 18

What is an initial business plan?

Accepted Answer

A) An outline or detailed description of how you expect to establish and grow your firm over the next one to five years 
B) An outline or detailed description of how you expect to establish and grow your firm over the next year 
C) An outline or detailed description of how you expect to establish and grow and eventually sell your firm 
D) An outline or detailed description of how you intend to raise the capital required to start a firm 
E) None of the above 
A) An outline or detailed description of how you expect to establish and grow your firm over the next one to five years 
B) An outline or detailed description of how you expect to establish and grow your firm over the next year 
C) An outline or detailed description of how you expect to establish and grow and eventually sell your firm 
D) An outline or detailed description of how you intend to raise the capital required to start a firm 
E) None of the above

Question 19

What are policy statements?

Accepted Answer

A) A sophisticated mission statement 
B) The rationale for establishing the business 
C) The practices that a firm has in attempting to fulfill client engagements and in operating its business in general 
D) Both a and b 
E) Both b and c 
A) A sophisticated mission statement 
B) The rationale for establishing the business 
C) The practices that a firm has in attempting to fulfill client engagements and in operating its business in general 
D) Both a and b 
E) Both b and c

Question 20

A variety of surveys on client satisfaction find that:

Accepted Answer

A) Many clients place more weight on personal relationships with their financial advisors than they do on relative performance 
B) Many clients place as much weight on personal relationships with their financial advisors as they do on relative performance 
C) Many clients place less weight on personal relationships with their financial advisors than they do on relative performance 
D) Many clients place more weight on business relationships with their financial advisors than they do on relative performance 
E) None of the above 
A) Many clients place more weight on personal relationships with their financial advisors than they do on relative performance 
B) Many clients place as much weight on personal relationships with their financial advisors as they do on relative performance 
C) Many clients place less weight on personal relationships with their financial advisors than they do on relative performance 
D) Many clients place more weight on business relationships with their financial advisors than they do on relative performance 
E) None of the above

Exam 23 Comprehensive Financial Plan-Dan and Laura

Cold calling is generally most prevalent with:

What does the acronym "CRM" stand when used in the expression "CRM software"?

What is an engagement letter?

Which of the following is an area in which financial planners may specialize?

The clients' opinion of the planner may depend on:

Which of the following designations is often acquired by people with insurance backgrounds?

Why should a financial planner volunteer for service in the community?

When can a subchapter S corporation serve a financial planner well?

Which of the following is a planning organization?

A mission statement:

Why is a career in personal finance planning personally awarding?

Which of the following is not an example of a multiservice entity that offers financial planning?

Why are other planners a potential significant source of referrals?

Which of the following explains why many commission-only and fee and commission planners like their affiliation with broker dealers?

Which of the following statements is accurate?

Which of the following is not a requirement that all financial planners should meet?

A mission statement:

What is an initial business plan?

What are policy statements?

A variety of surveys on client satisfaction find that:

Introduction to PFP

Time Value of Money

Beginning the Planning Process

Household Finance

Financial Statements Analysis

Cash Flow Planning

Debt

Non Financial Investments

Financial Investments

Risk Management

Other Insurance

Retirement Planning

Educational Planning

Tax Planning

Estate Planning

Stocks, Bonds and Mutual Funds

Background Topics

Capital Needs Analysis

Behavioral Financial Planning

Modern Investment Theory

Employee Benefits

Behavioral Finance-Applications

Examining Financial Regulation and Ethics

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