If Walter Becomes Incompetent to Manage His Affairs

question 12

Multiple Choice

If Walter becomes incompetent to manage his affairs:

• A) his chosen attorney-in-fact can make decisions for him if he appointed the person in a durable power of attorney with a springing power to become effective upon Walter's incompetence.
• B) a court will appoint a guardian if Walter had no power of attorney.
• C) his will becomes effective, and his executor or executrix will manage his business and personal decisions.
• D) Both a and b are correct.

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Definitions:

Financial Disclosure

The process by which a company releases and provides transparency about its financial performance, conditions, and risks to stakeholders.

Competitive Disadvantage

A condition or circumstance that puts a company at a less favorable position in the market compared to its competitors.

Financial Statements

Reports outlining a firm's financial health, encompassing its balance sheet, income statement, and cash flow statement.

Rigid Guidelines

Strict rules or procedures that are followed without allowance for flexibility.