A Financial Advisor Who Charges Clients Directly for Services and Receives

question 151

Multiple Choice

A financial advisor who charges clients directly for services and receives no commissions based on what or how much a client buys is said to be

• A) fee-based.
• B) commission-based.
• C) fee-only.
• D) None of these answer choices are correct.

---

Definitions:

Valid Contract

An agreement that meets all legal requirements, including offer, acceptance, consideration, and the intention to create a legal relationship, thereby enforceable by law.

Courts

Institutions that administer justice through the interpretation and application of laws.

Fraudulent Misrepresentation

The act of deliberately providing false information or deceiving another party, leading to harm or loss.

Odometer

An odometer is a device used to measure the distance traveled by a vehicle, typically recorded in miles or kilometers.