The Party Who Holds Property for the Benefit of Another

question 4

Multiple Choice

The party who holds property for the benefit of another under a trust agreement or arrangement is known as the

• A) beneficiary.
• B) trustee.
• C) rights holder.
• D) guarantor.
• E) principal.

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Definitions:

Violation

The act of breaking or failing to comply with a law, agreement, or code of conduct.

Accountant Liability

Accountant liability refers to the legal accountability of accountants to their clients and third parties for negligence, misconduct, or failure to follow professional standards.

Fraud

Willful misrepresentation aimed at obtaining an illicit or unearned gain, or to strip someone of their rightful legal privileges.

Negligence

A failure to behave with the level of care that someone of ordinary prudence would have exercised under the same circumstances, resulting in harm or damage.