(A) Using Examples, Differentiate Between a Comprehensive Financial Plan and a Limited

question 28

Essay

(a) Using examples, differentiate between a comprehensive financial plan and a limited advice plan as the 2 principal types of SOA documents the financial planner is expected to provide to clients.
(b) What is an alternative SOA document to those discussed above that is sometimes prepared by the financial planner in particular circumstances?

---

Definitions:

Oligopoly

A market structure dominated by a small number of large firms, leading to limited competition and often collaborative behavior among the firms.

Economic Profits

The surplus remaining after deducting all costs, including opportunity costs, from total revenues, indicating a firm's financial performance beyond breaking even.

Decreasing Returns to Scale

A situation in which, as the scale of production increases, the output increases at a diminishing rate, resulting in reduced efficiency.

Price-Inelastic

Describes a situation where the quantity demanded or supplied changes little when the price changes.