The Code Defines a Simple Trust as Which of the Following

question 105

Multiple Choice

The Code defines a simple trust as which of the following?

• A) One that is allowed to file Form 1041-EZ.
• B) One that has only one income beneficiary.
• C) One whose grantor was an individual who still is alive.
• D) One that must distribute its accounting income every year.

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Definitions:

Interest Inelastic

A situation where the demand for or the supply of a good or service does not significantly change in response to changes in interest rates.

Reverend Thomas Malthus

An 18th-century economist known for his theory on population growth, suggesting that population increases geometrically, whereas food supply increases arithmetically, leading to inevitable shortages.

Population Growth

The increase in the number of individuals in a population, commonly expressed as an annual percentage.

Dismal Science

A nickname for economics, stemming from its predictions and analyses that often focus on the limitations and constraints of economic activities.