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NEW QUESTION: 1


Answer:
Explanation:

NEW QUESTION: 2
The "black box testing" methodology enforces which kind of restriction?
A. Only the external operation of a system is accessible to the tester.
B. Only the internal operation of a system is known to the tester.
C. The internal operation of a system is only partly accessible to the tester.
D. The internal operation of a system is completely known to the tester.
Answer: A
Explanation:
Explanation/Reference:
Black-box testing is a method of software testing that examines the functionality of an application without peering into its internal structures or workings.
References: https://en.wikipedia.org/wiki/Black-box_testing

NEW QUESTION: 3
Which of the following does not describe a prohibited activity by investment advisers and their representatives, according to NASAA Model Rules?
A. The agreement that Simon LaGree has his clients sign indicates that LaGree uses SecureMoney Broker-Dealers in executing trades for his clients and that, in return, LaGree receives software from the broker-dealer that allows LaGree to perform some fundamental and technical analysis.
B. A 72-year-old retired social worker comes to Simon LaGree for investment advice. She has $50,000 to invest. Simon recommends she invest half of it in an international growth mutual fund and half in a variable annuity.
C. A new client comes to Simon LaGree for investment advice. The client has $25,000 to invest. Simon tells the client that it will cost the client $5,000 to have a customized financial plan developed for him, but after that the client needs to pay only 5% of the total value of the assets under management each quarter.
D. All of the above describe prohibited practices.
Answer: A
Explanation:
Explanation/Reference:
Explanation: It is not prohibited for LaGree to receive the software from SecureMoney in return for executing trades through that broker-dealer since LaGree has disclosed this to his clients. An investment adviser is permitted to receive soft dollars from broker-dealers in return for executing trades through them, as long as the client is informed of the arrangement and the soft dollars will benefit both the client and the adviser, which is the case in this instance since the software gives LaGree the ability to do research in order to better advise his client. Choice A is clearly prohibited since it constitutes an "unreasonable advisory fee." In Choice B, LaGree is making unsuitable recommendations to his client. A 72-year-old retired social worker is likely to have a greater-than-average need for liquidity to pay for unexpected items, such as medical bills. Variable annuities are designed to be long-term investments, not short-term investments, so they would not meet this need. They typically have high surrender penalties that the client would be subject to if she needed to make withdrawals within, say, the next 10 years. Likewise, international growth funds are not liquid investments. International growth mutual funds are invested in foreign stocks and are riskier than average, and are, thus, not suitable investment vehicles for the typical
72-year-old retired social worker.