Which of the Following Statements About Powers of Appointment Is

question 10

Multiple Choice

Which of the following statements about powers of appointment is false?

• A) Powers can be mere or fiduciary, depending upon whether the donee has obligations in relation to the exercise of the power.
• B) A power exercisable by will is known as a testamentary power.
• C) A power of appointment exercisable by will can also be exercised by deed.
• D) The donee of a general power of appointment can choose to make an appointment in his or her own favour.

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Definitions:

Dividends

Distributions of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders.

Journal Entries

Recorded transactions in the accounting system that show the effects of financial events on the accounts of a company.

Investment Account

An account held at a financial institution that contains securities, cash, and other investment vehicles.

Related Income

Income that arises from transactions or relationships between entities that have a special connection or are part of the same group.