Advisors at Broker-Dealers Must

question 45

Multiple Choice

Advisors at broker-dealers must

• A) learn enough about their clients' goals, attitudes, and risk tolerance to make suitable recommendations.
• B) only make recommendations in their clients' best interest, even if that means terminating the relationship.
• C) have their clients complete a federally regulated questionnaire about their goals, attitudes, and risk tolerance.
• D) None of these answer choices are correct.

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Definitions:

Highest Productivity

The maximum level of efficiency in which goods and services are produced with the least amount of resources in a given time period.

Principle of Specialization

A core principle that suggests individuals or organizations are more efficient and effective when they focus on a limited set of tasks or a specific area of expertise.

Classical Management Approaches

Early theories of organizational management focusing on efficiency, hierarchy, and clear division of labor.

Adult Personality

The patterns of thoughts, feelings, and behaviors that are characteristic of an adult and distinguish them from others.