OPTIONS:
A. establish a Chinese Wall between the research personnel and the sales personnel
B. register both the research personnel and the sales personnel in each State where the IA's services are offered
C. cross-train the research personnel and the sales personnel in each other's functions so that in the event of a confidentiality breach, one can take over the functions of the other
D. establish two separate IA firms registered with the State with one only having research personnel and the other only having sales personnel
Answer: A. establish a Chinese Wall between the research personnel and the sales personnel
Explanation: In a bid to maintain confidentiality and avoid leakage of vital information, there must be a barrier between the research personnels who makes findings on investment opportunities and packages for client needs and the sales personnels. This is because, research and investment informations are treated as classified and leakage could lead to bias, whereby some consumers will get the information and make moves before other consumers are informed via official release by the firm.
Answer:
$14,900
Explanation:
not-for-profit organization will report the investments at the fair value of the investments end of year, in the year-end statement of financial position.
Here,
Investment Fair value (end of year)
Stock A (100 shares) $51
Stock B (200 shares) $49
Stock A = (100 * 51) = $5,100
Stock B = (200 * 49) = $9,800
Total Investment fair value at end of year = $14,900
$14,900 will be the amount reported in stock investments in the year-end statement of financial position.
Answer:
A budget deficit
Explanation:
A budget deficit arises when the governments spend more than it has collected. The government 's main source of revenue is taxes and levies it imposes on businesses and individuals. Its expenses include salaries for public employees, social welfare, and expenditures on public goods and infrastructure development projects.
A budget deficit contrasts a budget surplus, which occurs when a government intends to spend less than it has collected. Budget deficits result in government borrowing from either the domestic or foreign markets. A balanced budget is when the collected revenues match the planned expenditures.
Answer:
Subordinated bonds, also known as subordinated debts, is an unsecured loan or bond that ranks below other, more senior loans or securities with the respect to claims on assets or earnings. Generally, subordinated bonds are debts that can be added to preferred stocks. Preferred stocks can be viewed as long- term investments, but are generally more risky because they are more sensitive to interest- rate risk if the rates rise. If they rise, then the price of the preferred stocks may fall and can fall lower than the price of short- term bonds. The difference between subordinated bonds and senior bonds is the priority in which the debt claims are paid. If one has to file bankruptcy or face liquidation, senior debts is paid back before the subordinate debt. Once the senior debt is completely paid back, then the subordinate debt starts being repaid.
Explanation:
Answer: Congress gives too many tax breaks to corporations.
Explanation:
Normative statements are said to be statement of opinion and not fact.
Option D is therefore a normative statement because it is the opinion of the speaker that congress gives too many tax breaks because from a neutral standpoint, it cannot be said with certainty the number of tax breaks that will be considered too much.
The other options are statements of fact.
