Which of the Following Would Not Be Treated as Situations

question 3

Multiple Choice

Which of the following would not be treated as situations where a cy-pres application would be permitted?

• A) A trust established in 1900 to provide a grant of £100 annually to the Vicar of Oldcastle, to be used by him to meet the needs of poor people in the parish. The trust has funds which now produce an income of £50,000 annually.
• B) A trust established in 2004 to support an event to be held on 11 November 2018 to commemorate the centenary of the Great War (the First World War, 1914 to 1918). After the event has taken place, funds of £350,000 remain.
• C) Two trusts to provide support for individuals suffering from age-related macular degeneration for patients at the Nightingale and Lark hospitals respectively after the ophthalmic services at both hospitals have been transferred to the new Oldshire University Hospital.
• D) A trust to provide free meals to those in the city of Oldcastle in need of such support. The publicly elected Mayor of Oldcastle has a policy of discouraging vagrants, and is putting pressure on the trustees to discontinue the provision of meals because this, in her view, encourages vagrancy.

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Definitions:

Required Rate

The minimum rate of return that an investment or project must offer to be considered viable or attractive.

Operating Assets

Assets used in the daily operations of a business to generate revenue, such as plant, equipment, inventory, and receivables.

Residual Income

The income that an entity generates after accounting for the cost of capital, showing what is effectively left over for shareholders.

Centralized Organizations

Organizations where decision-making authority is concentrated at the top levels of management, with lower levels primarily responsible for implementing decisions.