A person who acts on behalf of and for the benefit of someone else.
In 1994 all states enacted the Uniform Prudent Investor Act (UPIA). Explain the criteria.
-Standard of prudence is applied to the portfolio, not on specific investments
-The fiduciary is to focus on the trade off between risk and reward
-No restrictions on specific securities. Anything might be appropriate as part of a portfolio to achieve a specific goal
-Need for diversification is explicit
True or False: Does UPIA permit fiduciaries to delegate investment responsibilities to competent third parties?
True
Business structures: what is the liability and taxation of each entity?
1. Sole Proprietorship
2. General Partnership
3. Limited Liability Company
4. S Corporation
5. C Corporation
-Sole Proprietorship: Unlimited; Flow-through tax treatment, P&L reported on owner's personal tax return
-General Partnership: Unlimited; Flow-through tax treatment, P&L reported on owner's personal tax return
-Limited Liability Co: Limited; Flow-through tax treatment, P&L reported on owner's personal tax return
-S Corp: Limited; Flow-through tax treatment, P&L reported on owner's personal tax return
-C Corp: Limited; Double taxation, initially @ corp rate & all distributed dividends taxed at owners' personal tax rate
Author
Woodward
ID
26643
Card Set
Series 65: Duties of Investment Advisers (2-1 to 2-1 to 2-25)
