An Arrangement in Which Property Is Held by One Person

question 28

Multiple Choice

An arrangement in which property is held by one person for the benefit of another is a

• A) will.
• B) guardianship.
• C) trust.
• D) testamentary disposition.

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Definitions:

Payout Ratio

A financial metric indicating the percentage of a company's earnings paid out as dividends to shareholders, typically expressed as a percentage of net income.

Residual Dividend Policy

A strategy in which a company pays dividends to its shareholders from the residual or leftover equity once all project and operation costs have been met.

Target Capital Structure

The mix of debt, equity, and other securities that a company aims to hold to finance its operations and growth.

Capital Budget

The amount of money allocated for significant long-term investments or projects of a business.