What is one requirement for a designated broker regarding financial decisions?

A designated broker holds a crucial role within a firm, especially concerning financial decisions. One primary requirement for a designated broker is the ability to control operational and financial decisions of the firm. This responsibility ensures that the broker can effectively manage the financial health of the business, including executing budgets, overseeing expenditures, and making strategic financial choices that align with the firm's objectives.

Having control over these decisions is essential because it allows the broker to respond quickly to changing market conditions and operational needs. It also establishes a clear line of accountability, as the broker is typically responsible for ensuring that the firm maintains compliance with relevant laws and regulations related to financial practices.

In contrast, options that suggest requiring consultation with all agents or obtaining board approval for every decision would hinder the broker's efficiency and ability to act decisively. Solely handling decisions without oversight could lead to issues of accountability and a lack of checks and balances within the firm's operations. Therefore, the requirement for the broker to have the ability to control operational and financial decisions is vital for maintaining effective management and ensuring the firm's success.