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:

Bonds

A fixed income investment in which an investor loans money to an entity (corporate or sovereign) which borrows the funds for a definite period at a variable or fixed interest rate.

Excess Cash

Surplus funds that are not required for immediate operational needs or investment purposes.

Accrued Interest

Interest that has been incurred but not yet paid, usually recorded as a liability on the balance sheet.

Interest Dates

Specific dates on which interest payments on loans or bonds are due to be paid to lenders or bondholders.