In the Context of a Family-Owned Business, Which of the Following

question 67

Multiple Choice

In the context of a family-owned business, which of the following is a disadvantage of a living trust?

• A) The business goes to the designated heirs without going through probate court.
• B) Property can be put into the trust while the owner is alive.
• C) The ownership still remains with the owner after transferring the title to the trust.
• D) The title on real estate and securities must be changed to the name of the trust.

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Definitions:

Post-employment Benefits

Benefits, other than termination benefits, that are payable after completion of employment, typically after the employee retires; includes pensions, other retirement benefits, post-employment life insurance, and post-employment medical care.

Key Management Personnel

Individuals who have the authority and responsibility for planning, directing, and controlling the activities of an entity, typically at a senior level.

Joint Control

A situation in an arrangement where more than one party has control together, requiring unanimous consent for decision-making.

Economic Entity

An organization or unit in the economy that is capable of conducting economic activities, such as businesses or households.