For Each of the Following Items, Insert the Best Term

question 96

Multiple Choice

For each of the following items, insert the best term or phrase. An answer choice may be used more than once, but only one choice is the best for each descriptive phrase.
-A trust whose income is taxed to the donor, not the beneficiaries.

• A)Complex
• B)Decedent
• C)Executor
• D)Grantor
• E)Administrator
• F)Reversionary
• G)Simple
• H)Sprinkling
• I)Trustee

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Definitions:

Legal Claims

Rights to seek redress or enforcement through legal action.

Preferred Stock

A type of equity security that has priority over common stock in the distribution of dividends and upon liquidation.

Unpaid Dividends

Dividends that have been declared by a company's board of directors but have not yet been paid out to shareholders.

Cumulative Voting

A voting system in which shareholders can allocate their votes in any proportion among candidates for a company's board of directors.