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.

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Definitions:

Operating Leverage

A measure that shows how revenue growth translates into growth in operating income, highlighting the impact of fixed costs.

Financial Performance

An assessment of how well a company can use assets from its primary mode of business and generate revenues.

ROE

Return on Equity; a financial ratio indicating the profitability of a company in relation to its equity capital.

EPS

Earnings Per Share; a metric that indicates the portion of a company's profit allocated to each outstanding share of common stock.