The Principal of a Private-Purpose Trust Fund

question 39

Multiple Choice

The principal of a Private-Purpose Trust Fund

• A) Must be nonspendable in nature.
• B) Must be spendable in nature.
• C) Must never fall below a pre-determined threshold that is determined by generally accepted accounting principles.
• D) May be spendable or nonspendable in nature.

---

Definitions:

Market Segmentation

The process by which companies cluster customers into homogeneous groups.

Consumer Base

The group of customers or potential customers who are considered the target market for a product or service.