Problems or Conflicts That May Arise Between the Client's Goals

question 24

Multiple Choice

Problems or conflicts that may arise between the client's goals and the potential strategies and recommendations provided by the financial planner include:

• A) analysing opportunity costs.
• B) decisions about priorities.
• C) confronting ethical issues.
• D) all of the above.

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Definitions:

Legal Entity

An organization or structure that has legal rights and obligations, such as a corporation, partnership, or trust.

Doctrine of Marshaling Assets

A principle in equity that gives a junior creditor the right to request that senior creditors satisfy their claims from assets not pledged by the junior creditor, when possible.

Interest in the Partnership

Refers to a partner’s share or stake in both the assets and profits (or losses) of a partnership, often governed by a partnership agreement.

Share of Profits

A proportion of the profits earned by a business that is allocated to an individual or entity, often based on ownership interest.