Friday Five – 4 November – 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 2016/17, examinable until 31 August 2017.

1. How would you define a sole trader?
   1. A self-employed person who is personally liable for the debts of their business
   2. An individual who works on their own and doesn’t employ any staff
   3. An individual who provides services through a contract of employment
   4. A small business with one person solely responsible for controlling the business

2. If a company’s share price was 225p and its earnings per share were 42.4p, what is the Price Earnings Ratio?
   1. 18.84
   2. 9.54
   3. 1.88
   4. 5.31

3. When is a part-surrender under a non-qualifying life policy a chargeable event?
   1. If total part surrenders at the end of a policy year exceed cumulative allowances
   2. Each time a withdrawal is taken from a single premium investment bond
   3. A withdrawal in any policy year of up to 5% of the original investment
   4. If the policyholder took withdrawals over a period greater than 10 years

4. If an individual has total income above their personal allowance but is not working and has no other pension income, any tax due on their State pension:
   1. is deducted at source.
   2. cannot be collected and the payment is tax free.
   3. collected through self-assessment.
   4. must be paid monthly by direct debit.

5. In which of the following circumstances would the claimant on a life assurance policy normally be asked to sign a Statutory Declaration?
   1. When receiving the proceeds of a death claim
   2. When receiving the proceeds of a maturity claim
   3. When a policy document has been lost
   4. When a policy has been assigned

Answers

1. A – 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. A – See R03 Study Text, Chp 10
   Grab our taster mock exam paper for CII R03. Click here to download.

4. C – See R04 Study Text, Chp 7
   Grab our taster mock exam paper for CII R04. Click here to download.

5. C – See R05 Study Text, Chp 4
   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?

Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)