Municipal Fund Securities Quiz Flashcards

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1
Q

The syndicator of a limited partnership is a corporation or a person

A

Acting as the organizer of the partnership

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2
Q

XYZ limited partnership is seeking to roll up 50 individual limited partnerships into a Master Limited Partnership. Which of the following would be required for a toll up to go forward?

A

A disclosure to LPs if the roll up benefits the GP
The limit 2% of the few attributed to the structuring of a roll up
A vote by LPs to approve the roll up

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3
Q

What should an investor consider before establishing a 529 plan in a neighboring state?

A

The possible tax consequences for investing in an out of state plan

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4
Q

A registered representative must obtain written verification of an investors net worth for which of the following investments?

A

A direct participation program

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5
Q

Which of the following is correct regarding 529 plans?

A

Contributions grow tax deferred
They allow for an accelerated gift per donor
Rules and provisions may vary by state

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6
Q

Which of the following are considered a conflict of interest in a limited partnership?

A

The general partnership self dealing to insure profits without regard to the limited partners

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7
Q

An investor invests $20,000 in a limited partnership. The investors share of recourse debt is $80,000. What is true?

A

The basis is $100,000

The maximum risk is $100,000

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8
Q

What is an underwriters maximum sales charge?

A

10%

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9
Q

If a limited partnership interests are distributed in a public offering what is the name of the disclosure document?

A

Prospectus

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10
Q

An investors eldest child is about to graduate from high school and is not planning on attending any higher education program. What options does the investor have regarding the 529 plan which was established for this child?

A

The funds may be transferred to a sibling without penalty

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11
Q

All of the following are considered conflicts of interest for the general partner in a limited partnership

A

Selling a personally owned and existing office building to the limited partnership
Acting as an agent for the partnership in managing partnership assets
Accepting short term loans from the partnership

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12
Q

What oil and gas program has the least capital risk?

A

Income

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13
Q

Which of the following does describe development oil and gas drill programs?

A

Return potential is not as great as it is in exploratory drilling
A combination programs combines exploratory and developmental drilling
Drilling takes place only in proven areas

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14
Q

A limited partner exerts some control over partnership business activities. Which of the following are potential consequences?

A

Limited liability could be jeopardized

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15
Q

When a general partner is organizing and establishing a limited partnership the general partner is acting as a

A

Syndicator

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16
Q

Which of the following is a risk factor in a limited partnership of a DDP?

A

Risk of audit
Conflicts of interest with the sponsor
Very illiquid

17
Q

Qualified disability related expenses for an ABLE account include all of the following?

A

Wheelchair
Doctors visits
Rent

18
Q

The maximum fee a broker/ dealer can change for structuring a roll up is

A

2%

19
Q

In a DDP a limited partnership participation in the partnership does not take effect until

A

The general partner approves the subscription agreement

20
Q

A subscription for a limited partnership is deemed to be accepted when

A

The general partner reviews and approves the subscription

21
Q

In evaluating a limited partnership which is the most important consideration?

A

Economic viability

22
Q

Which of the following is correct regarding exploratory wells?

A

They are located in unproven areas

23
Q

All of the following are oil and gas DDP?

A

Wildcatting
Exploratory drilling
Income

24
Q

Which of the following statements is/are true about recourse loans in a limited partnership program?

A

The limited partner assumes responsibility for the loans repayment l
Any principal repayment Lowers the limited partners basis

25
Q

Eligible 1031 like kind exchanges include which of the following?

A

Apartment buildings

26
Q

When determining allowability of tax deduction md in a limited partnership the IRS mainly considers

A

Intent to make money

27
Q

What is the major difference between an oil and gas limited partnership and a real estate limited partnership?

A

IDCs

28
Q

Which of the following is a possible benefit for an equipment leasing direct participation program?

A

Steady income from rental payments