Which of the Following Is a Disadvantage of an Income

question 54

Multiple Choice

Which of the following is a disadvantage of an income trust?

• A) income trusts do not offer the potential for capital appreciation
• B) income trusts never provide stable cash flows
• C) only immature companies that do not have a regular cash flow can create income trusts
• D) unitholders of income trusts have a lower claim on assets than the holders of debt securities

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A chemical reaction where the rate of the forward reaction equals the rate of the reverse reaction, resulting in a constant concentration of products and reactants.

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A toxic condition resulting from ingestion of ethylene glycol, a compound commonly found in antifreeze, leading to metabolic acidosis and renal failure.

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The application of remedies or therapies to cure or alleviate a disease or medical condition.