For components, must include all FEE-PAYING accounts.

But for total firm asstes, include all FEE-PAYING & NON-FEE-PAYING accounts?

& what it means that ’ firm must define itself as a “distinct business entity?”’

Composites , not components.

And it’s all fee-paying, _ discretionary _ accounts. Nondiscretionary accounts may not be included in composites.

Whether discretionary or not.

It means that the investing public will see this firm as an entity unto itself, not merely a small part of a larger company. If a company has two (or more) divisions, but markets themselves as one company, then the whole company is the firm; if they market the divisions separately, then each division is a firm.

What does discretionary accounts mean?

Discretionary means that the portfolio manager decides what stocks to purchase. Non discretionary is where the clients makes the buy/sell decisions themselves. (I think)

For composites, all fee-paying and discretionary accounts must be included.

And firm assets must include all fee-paying and non-fee-paying accounts?

Is there a better way to memorize this? sad

Think of total assets as everything and composits as just fee paying discretionary accounts.