Which of the Following Statements Is False

question 4

Multiple Choice

Which of the following statements is false?

• A) In a fixed trust the interests of the beneficiaries have already been defined by the settlor.
• B) A trust in favour of 'such of my children who survive me' is an example of a fixed trust.
• C) A trust in favour of 'Rufus Stone and Michael Heath in such proportions as my trustees shall decide' is an example of a fixed trust because the names of the beneficiaries have already been identified.
• D) A lottery syndicate where members share any winnings in proportion to the size of the stake they have contributed is an example of a fixed trust.

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Definitions:

Reasonable Basis

A standard of evidence that suggests a belief or action is supported by a fair amount of facts or logical assumptions, often used in legal and regulatory contexts.

Franchisor

The original business or company that grants the license to third-party operators to conduct business under its name and system.

Hypothetical Basis

A theoretical foundation or scenario used for analysis or argument, often constructed to explore possibilities or outcomes.

Disclosure

Disclosure is the act of making new or vital information known, particularly facts that could influence decisions in a financial, legal, or personal context.