Sally Forth Has a Trust That She Can End at Any

question 77

Multiple Choice

Sally Forth has a trust that she can end at any time she wants.She has assets in the trust that she thinks she may need to use at a later date.What type of trust does Sally have?

• A)Revocable trust
• B)Irrevocable trust
• C)Bargain trust
• D)Negotiable trust
• E)Non-negotiable trust

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Definitions:

Voting Trust

An arrangement where shareholders' voting rights are transferred to a trustee, usually for the purpose of ensuring unified action or to resolve conflicts.

Share Titles

The formal documents that serve as evidence of ownership of stocks or shares in a corporation.

Trustee

A person or firm that holds and administers property or assets for the benefit of a third party.

Business Judgment Rule

A legal principle that protects the decisions made by the board of directors of a corporation as long as those decisions are made in good faith, with due care, and in the best interests of the corporation.