Series 65: Duties of Investment Advisers (2-1 to 2-1 to 2-25)

Card Set Information

Author:
Woodward
ID:
26643
Filename:
Series 65: Duties of Investment Advisers (2-1 to 2-1 to 2-25)
Updated:
2010-07-13 17:36:31
Tags:
Series
Folders:

Description:
Series 65
Show Answers:

Home > Flashcards > Print Preview

The flashcards below were created by user Woodward on FreezingBlue Flashcards. What would you like to do?


  1. What is a fiduciary?
    A person who acts on behalf of and for the benefit of someone else.
  2. In 1994 all states enacted the Uniform Prudent Investor Act (UPIA). Explain the criteria.
    • -Standard of prudence is applied to the portfolio, not on specific investments
    • -The fiduciary is to focus on the trade off between risk and reward
    • -No restrictions on specific securities. Anything might be appropriate as part of a portfolio to achieve a specific goal
    • -Need for diversification is explicit
  3. True or False: Does UPIA permit fiduciaries to delegate investment responsibilities to competent third parties?
    True
  4. Business structures: what is the liability and taxation of each entity?
    1. Sole Proprietorship
    2. General Partnership
    3. Limited Liability Company
    4. S Corporation
    5. C Corporation
    • -Sole Proprietorship: Unlimited; Flow-through tax treatment, P&L reported on owner's personal tax return
    • -General Partnership: Unlimited; Flow-through tax treatment, P&L reported on owner's personal tax return
    • -Limited Liability Co: Limited; Flow-through tax treatment, P&L reported on owner's personal tax return
    • -S Corp: Limited; Flow-through tax treatment, P&L reported on owner's personal tax return
    • -C Corp: Limited; Double taxation, initially @ corp rate & all distributed dividends taxed at owners' personal tax rate

What would you like to do?

Home > Flashcards > Print Preview