Which of the Following Statements Is the Most Appropriate for Describing

question 9

Multiple Choice

Which of the following statements is the most appropriate for describing the duties of trustees in relation to the beneficiaries of a discretionary trust of personal property in which the principal class of beneficiaries are the five children of the settlor

• A) The trustees must always give effect to the wishes of the beneficiaries.
• B) The trustees must always consult the beneficiaries, although they are not obliged to give effect to the wishes which the beneficiaries express.
• C) The trustees must act in the best interests of the beneficiaries, even if this may not be what the beneficiaries want.
• D) The nature of a discretion is that the trustees can do whatever they want without regard to the views or best interests of the beneficiaries.

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Definitions:

Short-run Supply Curve

A graphical representation showing the relationship between the price of a good and the quantity of that good that producers are willing to supply in the short run.

Elasticity

A measure of how responsive the demand or supply of a product or service is to changes in price or other factors.

Long-run Market Supply

Describes the total quantity of a good or service that producers are willing and able to supply at various prices in the long term, considering all factors of production are variable.

Resource Prices

The costs associated with acquiring the inputs needed for production, including raw materials, labor, and capital.