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.
These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.
- What is the difference between an Enduring Power of Attorney and a Lasting Power of Attorney?
- A lasting power of attorney cannot be used to make gifts.
- A lasting power of attorney allows the attorney to make decisions regarding the donor’s welfare as well as financial matters.
- Under an enduring power of attorney, power is only given in respect of the donor’s health and welfare.
- Under an enduring power of attorney, the attorney has to be over 18.
- What is a limitation of using company investment ratios?
- In a take-over, ratios can’t help shareholders assess if assets are being given away too cheaply.
- Ratios can’t provide meaningful comparisons with similar same sector companies.
- They can’t highlight any areas of a company that may require further scrutiny.
- Accounting policies could change over time, making historical comparisons misleading.
- 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?
- They are subject to an exit charge at age 18.
- They are subject to a 10-yearly periodic charge.
- They must give an absolute interest at age 18.
- They must give an interest in possession at age 18.
- 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:
- The purpose of the Single Assessment Process for people needing long-term care is to:
- Ensure they receive the care they require for both health and social care needs
- Minimise the cost to Local Authorities
- Monitor and inspect providers of Long-Term Care provision
- Record regional differences in costs of Long-Term Care
- B – See R01 Study Text, Chp 3
Grab our taster mock exam paper for CII R01. Click here to download.
- D – See R02 Study Text, Chp 1:2
Grab our taster mock exam paper for CII R02. Click here to download.
- C – See R03 Study Text, Chp 4
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 2:1
Grab our taster mock exam paper for CII R04. Click here to download.
- 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?
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