Which of the Following Is a Typical Duty of a Trustee

question 48

Multiple Choice

Which of the following is a typical duty of a trustee?

• A) File the entity's state and Federal income tax returns.
• B) Invest the assets that comprise the corpus of the entity.
• C) Distribute entity accounting income to the beneficiaries in accordance with the provisions of the trust instrument.
• D) All of the above.

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Definitions:

Month

A unit of time, roughly based on the period of the Moon's orbit around Earth, traditionally used to measure durations of approximately 30 days.

Break Even

The point at which total costs and total revenue are equal, resulting in no net loss or gain.

Variable Cost

Costs that vary directly with the level of production or sales volume, such as materials and labor.

Fixed Costs

Costs that do not change with the amount of goods or services produced, such as rent, salaries, and insurance.