Practice Quiz

FINRA Series 7 Exam Prep - Question List

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11. The Bubba Insurance Company is not incorporated. It consists of Bubba and his two brothers as general partners, who maintain an active securities account in the name of the company. If one of the partners should suddenly die, what course of actions should be undertaken by the registered representative at the brokerage?
  1. freeze the account from further activity until a death certificate and new partnership agreement are furnished to the brokerage
  2. no special action is required because the death of a single partner does not terminate the partnership agreement
  3. distribute the assets in the account to the surviving partners
  4. execute sell orders but do not accept buy orders or distribute assets from the account until a new partnership agreement is provided to the brokerage
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12. Which are the primary considerations in evaluating the worth of a limited partnership?
  1. the size of the tax deductions
  2. the cost of assets
  3. the adequacy of funding
  4. both B and C
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13. If recaptured deductions are added to income, recaptured investment tax credits are added to:
  1. income
  2. basis
  3. gains
  4. taxes
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14. To qualify as an intrastate offering under SEC Rule 147, which of the following is true of the issue?
  1. it must be approved by the SEC
  2. it must be sold only to bona fide residents of one state
  3. it cannot exceed $1,500,000 in value
  4. it must consist of common stock only
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15. Which of the following does not affect the public offering price of a new issue?
  1. anticipated earnings of the issuer in the next year
  2. dividend projections for the next year
  3. the book value of the issuer
  4. the selling group’s determination of value in the prevailing market conditions
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