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Certified Trust and Financial Advisor (CTFA) Questions 201–205 (page: 42)

Updated On: 9-Feb-2026

Spending, saving and investing to have the kind of life you want and financial security can be achieved by?

  1. Personal financial planning
  2. Paying interest
  3. Discussing your financial situation with a friend
  4. Regulating inflation

Answer(s): A



is concerned with the acquisition, financing, and management of assets with some overall goal in mind.

  1. Financial management
  2. Profit maximization
  3. Agency theory
  4. Social responsibility

Answer(s): A



Jensen and Meckling showed that can assure themselves that they will make optimal decisions only if appropriate incentives are given and only if they are monitored.

  1. Principals; agents; agents
  2. Agents; principals; principals
  3. Principals; agents; principals
  4. Agents; principals; agents

Answer(s): A



Which of the following statements is not correct regarding earnings per share (EPS) maximization as the primary goal of the firm?

  1. EPS maximization ignores the firm's risk level
  2. EPS maximization does not specify the timing or duration of expected EPS
  3. EPS maximization naturally requires all earnings to be retained
  4. EPS maximization is concerned with maximizing net income

Answer(s): D



Which of the following is not a perquisite (perk)?

  1. Company-provided automobile
  2. Expensive office
  3. Salary
  4. Country club membership

Answer(s): C



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