Which of the following statements regarding discretionary accounts is TRUE?
A) A branch manager must approve discretionary orders before entry.
B) A principal must approve discretionary orders before entry.
C) An order in which an investor designates the security's name, the number of shares, and whether to buy or sell and gives the agent discretion as to time and price only is not considered discretionary.
D) The rules regarding churning of accounts do not apply to discretionary accounts.
Answer: C) An order in which an investor designates the security's name, the number of shares, and whether to buy or sell and gives the agent discretion as to time and price only is not considered discretionary.