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Friday Five – 13 September – 5 Questions in 5 Minutes

Friday Five – 13 September – 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 2019/20, examinable until 31 August 2020.

  1. How does ‘leadership’ differ from ‘strategy’ as a key driver for a company?
    1. Leadership can only be derived from senior management; strategy can be filtered down and delivered by virtually any member of staff
    2. Leadership is the purpose of the business and strategy relates to how this is achieved
    3. Leadership sets the tone of the business, drives staff behaviours and quality of decisions, strategy sets priorities and management focus
    4. Leadership is an inherent skill, whereas strategy can be learned
  1. What is the government’s target for inflation?
    1. 2.5% based on RPI
    2. 2% based on RPI
    3. 2% based on CPI
    4. 2.5% based on CPI
  1. Lisa has recently made a £100,000 gain on selling her buy to let home. She is now considering whether to reinvest this in an Enterprise Investment Scheme (EIS). Which of the following would be a benefit to Lisa of doing this?
    1. She can defer the original gain until she disposes of the EIS shares
    2. 50% of the original gain will be exempt from tax
    3. Any subsequent gain would be taxed at a lower rate on disposal
    4. This will reduce the base cost of the EIS shares by the original gain
  1. In 2019/20, Charles has gross earnings of £160,000 and, in addition, £20,000 income from property rent. He contributes £3,000 per month to a personal pension and makes an annual gross charitable donation of £5,000. His “relevant UK earnings” for pension purposes are:
    1. £180,000.
    2. £160,000.
    3. £155,000.
    4. £152,000.
  1. Martin took out a life assurance policy on the life of his wife Karen. How will the policy be affected if they get divorced at some point in the future?
    1. There will be no change unless a court orders otherwise
    2. The policy will have to be cancelled
    3. The policy will have to be assigned to Karen
    4. The life assured under the policy will have to be changed

 

Answers

  1. C – See R01 Study Text, Chp 9
    Grab our taster mock exam paper for CII R01. Click here to download.
  1. C – See R02 Study Text, Chp 2
    Grab our taster mock exam paper for CII R02. Click here to download.
  1. A – See R03 Study Text, Chp 3
    Grab our taster mock exam paper for CII R03. Click here to download.
  1. B – See R04 Study Text, Chp 2.1
    Grab our taster mock exam paper for CII R04. Click here to download.
  1. A – See R05 Study Text, Chp 2
    Grab our taster mock exam paper for CII R05. 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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