Which of the Following Is NOT Required to Create a Valid

question 10

Multiple Choice

Which of the following is NOT required to create a valid trust?

• A)legal age and sound mind of the grantor
• B)witnesses
• C)a beneficiary(ies)
• D)property transferred to the trust

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Definitions:

Market Value Method

An accounting method that assesses assets and liabilities based on their current market prices rather than historical cost.

Book Value

The net value of a company's assets as found on its balance sheet, calculated by subtracting total liabilities from total assets.

Retained Earnings

The portion of a company's profits that is kept or retained within the company to be used for future growth, investment, or debt repayment, rather than being distributed to shareholders as dividends.

Detachable Stock Warrants

Financial instruments that grant the holder the right to purchase company stock at a specified price and are separable from the bond or stock with which they were issued.