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.
These questions relate to examinable tax year 2019/20, examinable until 31 August 2020.
- How does ‘leadership’ differ from ‘strategy’ as a key driver for a company?
- Leadership can only be derived from senior management; strategy can be filtered down and delivered by virtually any member of staff
- Leadership is the purpose of the business and strategy relates to how this is achieved
- Leadership sets the tone of the business, drives staff behaviours and quality of decisions, strategy sets priorities and management focus
- Leadership is an inherent skill, whereas strategy can be learned
- What is the government’s target for inflation?
- 2.5% based on RPI
- 2% based on RPI
- 2% based on CPI
- 2.5% based on CPI
- 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?
- She can defer the original gain until she disposes of the EIS shares
- 50% of the original gain will be exempt from tax
- Any subsequent gain would be taxed at a lower rate on disposal
- This will reduce the base cost of the EIS shares by the original gain
- 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:
- 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?
- There will be no change unless a court orders otherwise
- The policy will have to be cancelled
- The policy will have to be assigned to Karen
- The life assured under the policy will have to be changed
- C – See R01 Study Text, Chp 9
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 2
Grab our taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 3
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 2.1
Grab our taster mock exam paper for CII R04. Click here to download.
- 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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