Free SERIES 7 Exam Braindumps (page: 48)

Page 47 of 101

In which of the following is not a case where a deed to a condominium qualifies as a security?

  1. the seller intends to profit
  2. there is management by someone other than the owner
  3. there is a time and space rental pool
  4. there is a 14-day owner usage provision

Answer(s): D

Explanation:

there is a 14-day owner usage provision. This provision is unrelated to qualification as a security.



Which of the following sets out the details for the management board of condominiums, including the board’s powers and limitations?

  1. master deed
  2. bylaws
  3. rental agreement
  4. loan agreement

Answer(s): B

Explanation:

bylaws. The bylaws of a condominium association provide general details about management.



Which of the following best describes phantom income?

  1. income from deductions and tax credits
  2. the non-taxable portion of a distribution
  3. income received but not reported
  4. income reported but not received

Answer(s): D

Explanation:

income reported but not received. Reportable income that is not distributable includes loan forgiveness.



Which of the following oil and gas programs does not directly involve drilling?

  1. exploratory
  2. developmental
  3. balanced
  4. income

Answer(s): D

Explanation:

income. With an income program, the well is already producing. The risk is associated with the commodity price.






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