Which of the Following Statements Is True

question 2

Multiple Choice

Which of the following statements is true?

• A) The beneficiaries under a fixed trust must be ascertainable at the time the trust is set up.
• B) A trust to divide a fund in equal shares between 'such of my children who survive me' can only be valid if the person setting up the trust is already dead, otherwise the birth of new children will change the size of the class, and therefore the shares of the beneficiaries.
• C) The beneficiaries under a fixed trust must be described in such a way that they are individually identifiable.

Understand the role of formatting elements in enhancing message readability.

Know the appropriate use of lists and punctuation in written communication.

Recognize the significance of empty space in document design.

Understand the purpose and elements of ratio analysis for assessing financial performance.

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Definitions:

Paid-In Capital

The sum of funds that a corporation has obtained from investors in return for stock shares.

Legal Capital

The portion of a company's equity that cannot legally be distributed to shareholders, often equating to the par value of the issued shares.

Common Stock

Represents equity ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Paid-In Capital

The total amount of capital that shareholders have directly contributed to a company through the purchase of its shares.