This question-specific review guide is tied to the answer reasoning for a PracticeTestVault item. Use it after you answer the question so the review stays focused on what the prompt actually tested.
What this question is testing
Objective: Definition of investment adviser
Prompt focus: Under the Investment Advisers Act, a person who meets the three-part definition of an investment adviser does which of the following for compensation?
Why the correct answer works
Provides advice about securities as part of a regular business
Correct. An investment adviser provides advice about securities as part of a regular business and is compensated for it.
Why the tempting wrong answer fails
Selling insurance policies is not the same as providing securities advice for compensation.
Plain-language takeaway
Use the rationale to connect the prompt clue, the correct choice, and the tested objective before retaking a similar item.
Simple analogy
Think of definition of investment adviser like following a short checklist: identify the clue, confirm the rule, and then make the move that fits this exact scenario.
How to review it before a retake
- Underline the command word and name what the question is asking before rereading the choices.
- Compare the correct answer against the closest distractor and write the exact detail that separates them.
- Retest this objective with a fresh question without looking at the rationale first.