The Major Disadvantage of a Trust Is

question 10

Multiple Choice

The major disadvantage of a trust is:

• A) expense.
• B) lack of privacy.
• C) it may have to go through an often lengthy probate process.
• D) lack of control.

Explain the role and limitations of Private Letter Rulings in tax authority.

Grasp the concept of progressive, proportional, and regressive tax rate structures.

Calculate and differentiate between marginal and average tax rates under various tax structures.

Identify qualifying conditions for health care insurance coverage exemptions.

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Definitions:

Capital Expenditure

Capital deployed by a corporation to buy, improve, and upkeep tangible assets like land, factories, or machinery.

NPV

Net Present Value, a calculation used to determine the present value of a series of future cash flows minus the initial investment, utilized in capital budgeting to assess the profitability of an investment.

Least-Cost Decision

A decision-making process focused on selecting the option that requires the lowest financial outlay while still achieving the desired result.

Economic Profit-Maximising

The strategy of adjusting the output and pricing of goods or services to achieve the highest possible profit, taking both explicit and implicit costs into account.