A Distinguishing Characteristic of a Business Trust Is That

question 16

Multiple Choice

A distinguishing characteristic of a business trust is that:

• A) the trust estate is devoted to the conduct of a business.
• B) each beneficiary must have the consent of all the other beneficiaries in order to sell or transfer his interest in the trust.
• C) the trustees and beneficiaries share the functions of management and control.
• D) the trust can be established with no formality.

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Definitions:

Effective-interest Method

The effective-interest method is a technique used in amortizing the discount or premium on bonds payable, where the interest expense recorded over time corresponds to the bond's carrying value.

Interest Expense

Interest expense is the cost incurred by an entity for borrowed funds, recognized on the income statement.

Anthropocentric

Pertaining to the belief that human beings are the central or most significant species on the planet, often regarding nature and environment from a human-centered perspective.

Biodiversity

The variety of life in the world or in a particular habitat or ecosystem, including the variety of species, genetic variations, and ecosystems.