CISI ICWIM Dumps Questions Answers

Offshore Foundations

These legal entities are typically used for wealth preservation, estate planning, or philanthropic purposes.

Foundations are managed by acouncil, which is responsible for operational decisions and ensuring the foundation’s goals are met.

Why the Answer is C

The council acts similarly to a board of directors but focuses specifically on the foundation’s assets and objectives.

Why Other Options are Incorrect

A. Board of directors: Applies to companies, not foundations.

B. Trustees: Apply to trusts, not foundations.

D. Beneficiaries: Beneficiaries do not have decision-making authority.

ICWIM Study Guide, Chapter on Trusts and Foundations: Discusses the governance of offshore foundations.

Legal Principles of Foundations: Confirms the role of the council.

ReferencesThus, the correct answer isC. The council.

Minimum Efficient Scale:

This is the point where a company achieves the lowest average cost per unit due to economies of scale.

Once this level is reached, the firm can afford to lower prices to remain competitive and expand market share.

Elimination of Other Options:

A: Halting expansion would waste the cost advantages achieved.

B: Accelerating output expansion could lead to diseconomies of scale.

C: Increasing unit prices is counterintuitive at this stage.

References:

ICWIM Module 3: Coverage of cost structures and the theory of the firm.

Treasury Bills Defined

Treasury bills (T-bills) are short-term government debt securities issued at a discount and redeemed at face value at maturity.

They are typically issued with maturities of3 months (most common), 6 months, and 1 year.

Why the Answer is B

While T-bills can have shorter or longer maturities,3 monthsis the standard minimum maturity for most markets, including the UK and US.

ICWIM Study Guide, Chapter on Fixed Income Securities: Covers treasury bill characteristics.

Debt Market Literature: Confirms typical T-bill maturities.

References