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forsale [732]
3 years ago
10

An investment adviser that manages a portfolio for a client has not taken custody. The customer informs the adviser that he will

be traveling overseas for 1 year on a round-the-world cruise and gives the adviser authority to write checks on his personal bank account to pay the quarterly custodian bank fees. Under the provisions of the Investment Advisers Act of 1940, the adviser:
Business
1 answer:
RoseWind [281]3 years ago
8 0

Answer: C. has taken custody of customer funds and must comply with the additional requirements of the custody rule

Explanation:

The options for the question are:

A. can follow the customer's instructions without additional action taken, since this is a service to the customer

B. has not taken custody of client funds, unless the custodian bank and the investment adviser are under common ownership

C. has taken custody of customer funds and must comply with the additional requirements of the custody rule

D. has a conflict of interest that must be disclosed in writing to the customer

The Investment Advisers Act is a law which was enacted in order to regulate the investment advisers. It requires that firms that receive compensation when they advise others about their securities investments will have to register with Securities Exchange Commission and also abide with the regulations which are in place to protect the investors.

In the Act, it was said that an investment adviser has had a custody of the client assets, and should therefore comply and abide with the rule since the adviser is in possession of the client funds. Therefore, option C is the correct answer.

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Answer:

intermediate goods or consumer goods

Explanation:

8 0
3 years ago
Fresnas Inc. is a furniture manufacturing company. It has taken the initiative of incorporating social responsibility as one of
Evgen [1.6K]

Answer:

Green marketing.

Explanation:

Green marketing is promotion and selling of products that are environmental friendly. The product should be produced in an envimentally friendly process and should be sustainable. As is seen in the example of Fresnas Inc, they are using recycling as a sustainable environment friendly process to produce goods, while making more profit.

7 0
3 years ago
A forecast is defined as a(an) Select one: A. set of observations on a variable measured at successive points in time. B. quanti
Brilliant_brown [7]

Answer:

The correct answer is option C.

Explanation:

Forecast is the prediction of future values of a time series.

Forecast in literal sense means prediction or estimate.

Forecast is based on the examination of a systematic data in time series, which reflects some past behavior and future predictions are made on the basis of that.

Time series can be described as the sequence of observations regarding a variable which is recorded over a certain time period.

8 0
3 years ago
The sales returns and sales allowances accounts are classified as
Harlamova29_29 [7]

These two Sales Revenue accounts (the sales returns and sales allowances) are classified as <em>Contra accounts.</em>  They have debit balances unlike the Sales Revenue account.

  • The purpose of their creation is to maintain the Sales Revenue account at its gross amount for measure purposes.

  • The Sales Returns account is the General Ledger account for recording goods returned by customers.  It reduces the Accounts Receivable account, which is credited with Sales Returns.

  • The Sales Allowances account records allowances granted to customers for defective goods, which reduce their balances.

Thus, the two sales accounts are contra accounts and they have debit balances.

Read more: brainly.com/question/14869899

6 0
2 years ago
The large foreign supply of funds to the U.S. market is partially attributed to the a. low foreign saving rates. b. high foreign
Grace [21]

Answer:

a. low foreign saving rates.

Explanation:

As foreing countries saving rates are lower than US after conidering inflation and risk premium; people from abroad prefers to invest in the US than in their native country as feel it more safe and more prosperus also, they can yield better return in US dollars as their countries are exposed to decreases in the exchange-rates

4 0
3 years ago
Read 2 more answers
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