Which of the Following Statements Is Not True of an Enduring

question 5

Multiple Choice

Which of the following statements is not true of an enduring power of attorney?

• A)It is sometimes called a living will.
• B)It generally takes effect when and if the principal loses intellectual capacity.
• C)It generally lapses when and if the principal loses intellectual capacity.
• D)Like a general power of attorney it is a written grant of express actual authority.

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Definitions:

Voting Common Stock

Shares in a company that grant the holder the right to vote on corporate matters, such as electing the board of directors.

Fair Value

The market price for divesting an asset or the obligation to liquidate a liability in a harmonious transaction among interchange participants at the established evaluation period.

Book Value

Book value is the value of an asset as it appears on a balance sheet, calculated as the cost of the asset minus any depreciation.

Acquisition Method

The accounting technique used in consolidating the financial statements of a group where one entity has control over another.