Which of the Following Is the Most Reliable Means of Distinguishing

question 14

Multiple Choice

Which of the following is the most reliable means of distinguishing a trust relationship from an agency relationship for purposes of deciding which type of fiduciary fund should be used?

• A) Examine the applicable documents and contact the GASB for a determination letter.
• B) Examine the aggregate of factors, such as the enactment that brought the relationship into existence and regulations under which it operates.
• C) Examine the length of time assets will be held; agency relationships are generally in existence longer than trust relationships.
• D) Examine the wording of any agreements to determine if the word "trust" or "agency" is used.

---

Definitions:

Good Faith

Acting with honesty, fairness, and sincerity in legal or financial transactions, without intent to deceive or defraud.

Specific Performance

A legal remedy requiring a party to fulfill their contractual obligations, rather than just paying damages.

Stop Delivery

An order to halt the delivery process of goods, often issued when there is an issue with the order or if the goods are no longer needed.

Incidental Damages

Expenses reasonably associated with or related to the breach of a contract, beyond the direct damage costs.