Log in
Finance
1
answer
0
watching
124
views

1- A limited partnership investing in raw land would be MOST interested in:

a. Depreciation deductions

b. Consistent income from land

c. Capital gains due to appreciation

d. Depletion allowance

2. - An individual wants to buy an interest in an oil and gas limited partnership that has the LEAST amount of risk. The MOST suitable recommendation would be a(n):

a. Income program

b. Exploratory program

c. Drilling program

d. Balanced program

3. A registered representative is required to certify which TWO of the following choices when a customer is purchasing a limited partnership?

I. That the customer has been advised by an accountant

II. That the customer is in a financial position to be investing in this type of product

III. That the customer has a sufficient net worth to lose his entire investment

IV. That the customer will not be investing in this type of product for a retirement account

a. I and III

b. I and IV

c. II and III

d. II and IV

Watch
1
answer
0
watching
124
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Irving Heathcote
Irving HeathcoteLv2
28 Sep 2019

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related questions

1. - Place the following actions in the correct chronological order for opening an options account.

I. Receive the signed options agreement from the client

II. Obtain financial information

III. Execute a transaction

IV. Receive approval of the account

a. I, II, IV, III

b. II, IV, III, I

c. II, IV, I, III

d. III, II, I, IV

2. An investor purchases 10 Eastman Kodak October 60 call options. One month later, Eastman Kodak stock splits 3 for 2. After the split, the investor will own:

a. 10 contracts for 100 shares, each with a $40 strike price

b. 10 contracts for 150 shares, each with a $40 strike price

c. 15 contracts for 100 shares, each with a $40 strike price

d. 15 contracts for 150 shares, each with a $40 strike price

3- List the following choices in the proper order for settling accounts in the event of a dissolution of a limited partnership.

I. General creditors

II. Limited partners

III. General partners

IV. Secured lenders

a. IV, I, II, III

b. I, IV, III, II

c. I, IV, II, III

d. IV, III, I, II

4. A drill manufacturer in the U.S. has a contract with a French company to deliver equipment in the near future. Payment will be made in euros. The U.S. manufacturer can protect itself against an adverse change in the value of the euro by:

a. Buying euros

b. Buying euro puts

c. Buying euro calls

d. Shorting euro puts

5. In a direct participation program, which of the following parties is subject to the MOST risk in a limited partnership?

a. The general partner

b. The limited partner

c. The Internal Revenue Service

d. The attorney who acts as a legal consultant to the limited partnership

1. Which of the following choices is the most beneficial tax consequence to an individual when computing his federal tax liability?

a. Depreciation

b. Depletion

c. Recapture

d. Tax credits

2. In August, an investor sells an uncovered listed option and receives a $600 premium. The following February, the customer makes a closing purchase transaction at 5. The result of the transaction is:

a. A capital gain of $100

b. Ordinary income of $100

c. A capital loss of $100

d. Not taxabl

3. When determining position and exercise limits for a listed equity option, which TWO of the following positions are considered to be on the same side of the market?

I. Long calls and long puts

II. Long calls and short puts

III. Short calls and short puts

IV. Short calls and long puts

a. I and III

b. I and IV

c. II and III

d. II and IV

The dividend growth model assumes that:

I. dividends increase at a constant rate forever.

II. can be used to compute an equity price at any point in time.

III. can be used to value zero-growth equities.

IV. requires the growth rate to be less than the required return.

a. I and III only

b. II and IV only

c. I, III, and IV only

d. I, II, and IV only

e. I, II, III, and IV

Weekly leaderboard

Home
Homework Help 3,900,000
Finance 370,000
Start filling in the gaps now
Log in