Series 7 Exam Question 267: Answer and Explanation

Question: 267

Which of the following are important to investors evaluating direct participation programs?

I. The economic soundness of the program

II. The expertise of the general partner

III. The basic objectives of the program

IV. The start-up costs

• A. I, II, and III
• B. I, II, and IV
• C. II, III, and IV
• D. I, II, III, and IV

Correct Answer: D

Explanation:

D. All the choices listed are important to evaluate for investors of direct participation programs.