Friday Five – 11 January – 5 Questions in 5 Minutes

Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday

What’s this all about?

It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.

1. What is the difference between an Enduring Power of Attorney and a Lasting Power of Attorney?
   1. A lasting power of attorney cannot be used to make gifts.
   2. A lasting power of attorney allows the attorney to make decisions regarding the donor’s welfare as well as financial matters.
   3. Under an enduring power of attorney, power is only given in respect of the donor’s health and welfare.
   4. Under an enduring power of attorney, the attorney has to be over 18.

2. What is a limitation of using company investment ratios?
   1. In a take-over, ratios can’t help shareholders assess if assets are being given away too cheaply.
   2. Ratios can’t provide meaningful comparisons with similar same sector companies.
   3. They can’t highlight any areas of a company that may require further scrutiny.
   4. Accounting policies could change over time, making historical comparisons misleading.

3. Maggie and John Brown are reviewing their wills and contemplating including a trust for ‘bereaved minors’ as they have 12-month-old twin daughters. Which of the following should they be made aware of regarding this type of trust?
   1. They are subject to an exit charge at age 18.
   2. They are subject to a 10-yearly periodic charge.
   3. They must give an absolute interest at age 18.
   4. They must give an interest in possession at age 18.

4. Cyril had pension benefits already in payment at ‘A’ day. As he has further benefits to crystallise, the earlier pension will be valued by a factor of:
   1. 10:1
   2. 20:1
   3. 25:1
   4. Zero

5. The purpose of the Single Assessment Process for people needing long-term care is to:
   1. Ensure they receive the care they require for both health and social care needs
   2. Minimise the cost to Local Authorities
   3. Monitor and inspect providers of Long-Term Care provision
   4. Record regional differences in costs of Long-Term Care

Answers

1. B – See R01 Study Text, Chp 3
   Grab our taster mock exam paper for CII R01. Click here to download.

2. D – See R02 Study Text, Chp 1:2
   Grab our taster mock exam paper for CII R02. Click here to download.

3. C – See R03 Study Text, Chp 4
   Grab our taster mock exam paper for CII R03. Click here to download.

4. C – See R04 Study Text, Chp 2:1
   Grab our taster mock exam paper for CII R04. Click here to download.

5. A – See CF8 Study Text, Chp 2
   Grab our taster mock exam paper for CII CF8. Click here to download.

How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.