What Is the Difference Between a Purchase of Property from a Gift

question 84

Multiple Choice

What is the difference between a purchase of property from a gift of property?

• A) All property needs a title to be transferred
• B) No consideration is needed for a gift.
• C) All forms of property except for gifts must be in writing.
• D) For gifts to be effective, there must be written intent.
• E) There is no transfer requirement for gifts.

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Definitions:

Marketable Securities

Short-term financial instruments that are easily convertible into cash, such as government bonds or certificates of deposit.

NPV

Net Present Value; a method used in capital budgeting to evaluate the profitability of an investment or project by calculating the difference between the present value of cash inflows and outflows.

Lockbox Services

Banking services that speed up the collection of payments from customers by using a special post office box accessible by the bank.