Identify Which of the Following Statements Is True

question 95

Multiple Choice

Identify which of the following statements is true.

• A)A trust can own S corporation stock and have a C corporation as a beneficiary as long as the corporation is the sole beneficiary.
• B)A QSST is an arrangement whereby the stock owned by a number of shareholders is placed under trust control for purposes of exercising the stock voting rights.
• C)A testamentary trust can be converted into a QSST trust.
• D)All of the above are false.

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Definitions:

Equity Trusts

Investment funds that pool money from investors to purchase a diversified portfolio of equities, or stocks, managed by a professional fund manager.

Mortgage Trusts

Investment vehicles that pool mortgage loans and issue shares to investors, who receive dividends from the interest and principal payments made by borrowers.

REITs

Real Estate Investment Trusts, companies that own, operate, or finance income-generating real estate, allowing investors to invest in large-scale real estate properties.

Growth Fund

A type of mutual fund or investment fund that focuses on investing in growth stocks or companies expected to grow at an above-average rate compared to their industry or the market.