Consistent with RG 168, When Documenting the SOA Financial Planners

question 2

Multiple Choice

Consistent with RG 168, when documenting the SOA financial planners should:

• A) use the language of the Corporations law.
• B) use plain English consistent with the language of the client.
• C) note that the central focus of the SOA should be the client and not the financial planner's range of technical skills.
• D) both b and c

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Definitions:

Net Profit Margin Percentage

A financial metric expressing the percentage of revenue remaining after all operating expenses, interest, taxes, and preferred stock dividends have been deducted from a company's total revenue.

Gross Margin

The difference between sales revenue and the cost of goods sold, indicating the profitability of a company's core activity.

Net Operating Income

The profit generated from a company's operational activities, excluding taxes and interest.

Return on Total Assets

Return on Total Assets (ROTA) is a financial ratio that measures a company's profitability relative to its total assets.