Friday Five – 19 June 2015 – 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.
Ready, steady, go…
- What must a non-real time financial promotion include?
- Past performance data for the past 5 years
- That tax may be subject to change in the future
- The shelf life of the promotion
- Name of firm and contact point
- Calder PL has issued 4 types of preference shares, how would you normally expect the shareholders to be ranked?
- According to the date the investor purchased the shares, with the earliest having higher priority
- According to the level of investment, with larger investors having higher priority
- According to their priority for payment of dividends and entitlement to capital on winding up
- According to the number of preference shareholders compared to ordinary shareholders
- Edward is a company director and is considering the best way of taking remuneration from his company. What might be a disadvantage for him of taking a low salary and high dividends?
- Dividends are not relevant earnings and so could restrict pension contributions
- Corporation tax would be payable at a higher rate as the salary is not being withdrawn from company profits
- A reduced salary would reduce any State pension entitlement in the future
- The dividend payment would be subject to a higher rate of National Insurance
- Bob registered his £1.65m pension fund for Primary protection. Assuming he drew all his benefits in 2014/15, he will be entitled to a personal lifetime allowance of:
- A mortgage protection insurance policy is designed to cover:
- All mortgage related expenses
- The monthly mortgage interest only
- The full amount of monthly mortgage repayments
- Mortgage repayments and any associated life policies only
- D – See R01 Study Text, Chp 7 Section A4A
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 1:2 Section C3A
Grab out taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 11 Section B4
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 2.2 Section F1
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See R05 Study Text, Chp 9 Section C1B
Grab our taster mock exam paper for CII Ro5. 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?
Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)