Labour Sponsored Venture Capital Corporations

KNOWLEDGE EXPECTED OF: QAFP® Professionals

Highest Knowledge Level: Awareness

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Define a labour-sponsored venture capital corporation.1
  • Identify the purpose for which a labour-sponsored venture capital corporation may be used. 
  • Identify that an investment in a labour-sponsored venture capital corporation requires a securities license for an individual to act in furtherance of a trade. 
  • Identify that a labour-sponsored venture capital corporation must be approved by the securities administrator of the province/territory in which they are traded. 

REFERENCES

1 Labour-sponsored venture capital corporations may also be known as labour-sponsored investment funds.  

KNOWLEDGE EXPECTED OF: CFP® Professionals

Highest Knowledge Level: Evaluation

Knowledge Levels and Associated Verbs


Awareness
The state of being aware that something exists / to have familiarity with a particular activity or subject
Understanding
To comprehend the general relationship of particulars / to have an expertise with how something works
Application
Ability to put information to use / to use knowledge for relevant, practical purposes
Evaluation
To judge or conclude by utilizing data / a systematic determination of something’s worth or significance
Define
To state exactly the meaning of
Identify
To be aware of / to recognize and correctly name / to locate an appropriate resource
Explain
To make clear the meaning of / to describe something in more detail or reveal relevant facts or ideas related to it
Determine
To ascertain / to come to a decision, such as by investigation or reasoning
Compare
To note the similarities and differences between two or more things
Estimate
To determine an approximate value for
Calculate
To find the value using mathematics
Convert
To change from one form or purpose to another
Evaluate
To reach a conclusion or make a through careful study
Interpret
To give the meaning of / to construe or understand / to translate orally

Hold cursor over or click on each term to read its definition.

  • Define a labour-sponsored venture capital corporation.1
  • Identify the purpose for which a labour-sponsored venture capital corporation may be used. 
  • Identify that an investment in a labour-sponsored venture capital corporation requires a securities license for an individual to act in furtherance of a trade. 
  • Identify that a labour-sponsored venture capital corporation must be approved by the securities administrator of the province/territory in which they are traded. 

Additional Knowledge Expected of CFP Professionals
  • Determine how each of these factors may impact the suitability of an investment in a labour-sponsored venture capital corporation:
    • Time horizon
    • Volatility
    • Risk tolerance
    • Investment objective
    • Financial situation
    • Personal situation
    • Income
    • Liquidity
    • Control
    • Tax impact
    • Investment management process
    • Economic cycle
    • Cost
    • Historical performance
    • Performance expectations
  • Evaluate how each of the factors may impact the suitability of an investment in a labour-sponsored venture capital corporation.
  • Explain for whom an investment in a labour-sponsored venture capital corporation may be suitable.
  • Interpret the return for an investment in a labour-sponsored venture capital corporation. 
  • Explain the tax credit(s) available for investment in a labour-sponsored venture capital corporation.
  • Estimate the after-tax cost (based on asset location) of investing in a labour-sponsored venture capital corporation.
  • Explain risks that may affect an investment in a labour-sponsored venture capital corporation.

REFERENCES

1 Labour-sponsored venture capital corporations may also be known as labour-sponsored investment funds.  
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