Series 7 Domain 2 (Quiz 2): Opens Accounts after Obtaining and Evaluating Customers’ Financial Profile and Investment Objectives

Three brothers open a joint account instructing you that if one of them dies, they want the cash and securities in the account to go to the remaining parties to the account. The account should be opened

Two siblings have an account with your broker-dealer registered as joint tenants with right of survivorship (JTWROS). Both live in a state that recognizes community property as an ownership designation. If one of the siblings dies, which of the following will occur?

An agent is permitted to open all of the following customer accounts except

All of the following statements regarding a transfer on death (TOD) account are correct except

An agent taking which of the following actions would be committing a violation?

Which of the following businesses would have the simplest requirements for opening an account at a FINRA member firm?

Prime brokerage accounts are most often used by

Which of the following is not true in jurisdictions that recognize the marital property designation known as community property?

A broker-dealer has set up a prime brokerage account for one of its customers. This customer is most likely

Under the Uniform Transfer to Minors Act (UTMA), how can stock subscription rights be handled in a custodial account?

An incorporated business model that allows flow-through of business income and losses directly to shareholders in order to avoid double taxation is

A registered representative of a FINRA member firm specializes in handling business accounts. In which of the following accounts are the business owners subject to double taxation?

Many businesses open brokerage accounts to invest surplus funds. For which of the following business forms would suitability information on the owners not be required?

If a customer wants to open an account in the name of her adult son and wants the account to be approved for uncovered option writing, her request should be refused because

For which of the following business structures is the income taxed to the business?

On Monday, John bought and sold 1,000 shares each of MEDX and CETN stock. On Wednesday, he purchased an additional 500 shares of CETN and 1,600 shares of KRS, which he closed in two trades of 800 shares each, later that day. On Friday, John executed a trade to purchase 2,000 shares of BUV and sell 300 shares of the CETN he purchased on Wednesday. Under FINRA rules, John meets the definition of

The type of brokerage account that does not pass assets to other participants at the death of a participant is

A joint account could be opened for any of the following except

If a new joint tenants with right of survivorship account is opened, all of the following statements are true except

A hedge fund has contracted with your broker-dealer to handle all of its clearing functions and provide all back-office support functions while it is executing transactions through numerous other broker-dealers with whom your broker-dealer will have agreements. This type of account is known as

Dale Wells, a British citizen temporarily working in the United States, wants to form a business venture with other investors. Wells is looking for favorable tax treatment of earnings and losses. Wells also wants to limit the number of investors but is willing to share control of the enterprise with others to attract them. What business form would you advise?

If a business owner's goal is to establish an entity that features ease in raising capital and limits personal liability, which of these entities is the most appropriate?

Which of the following businesses must have more than one owner?

Which of the following employer-sponsored plans is not required to meet the nondiscrimination provisions of ERISA?

All of the following are true regarding nonqualified deferred compensation plans except