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.

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Definitions:

Performance Standards

are established expectations regarding the quality and speed of work for tasks or job roles, often used for evaluation purposes.

Sales Call Allocation

A plan to allocate sales calls within territories based on the number of accounts in the territory, the number of sales calls made on customers, time required for each sales call, frequency of customer sales calls, travel time around the territory, nonselling time, and return on time invested.

Traveling Time

The duration spent moving from one location to another, often considered in the context of work-related tasks or commutes.

Mutual Investment

A requirement for building and maintaining relationships that involves effort, time, and resources.