A Trust Established by Your Will That Becomes Effective Upon

question 15

Multiple Choice

A trust established by your will that becomes effective upon your death is called a(n) ____________ trust.

• A)testamentary
• B)living
• C)general
• D)formal
• E)insurance

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Definitions:

Capital Budgeting

The method of assessing and choosing long-term investments consistent with the objective of maximizing shareholder wealth.

Fixed Assets

Long-term tangible assets used in the operation of a business, such as buildings, machinery, and equipment, which are not intended for sale.

Initial Outlays

The initial investments required to start a project or purchase an asset, often including costs such as capital expenditure and working capital.

Revenue Forecasts

Predictions about the amount of money a company is expected to generate in future periods through sales or other income.