Which of the Following Is Correct

question 75

Multiple Choice

Which of the following is correct?

• A) A person who purchases a corporate bond is borrowing money from a corporation.
• B) A person who purchases a corporate stock is buying ownership in the corporation.
• C) A person who purchases a corporate bond is guaranteed to earn dividends from the stock.
• D) A person who purchases a corporate stock gets the option to buy other shares at lower prices.

---

Definitions:

Estate

The collective assets, rights, and interests that a person owns at death, encompassing both real property and personal property.

Trust Instrument

A legal document that creates a trust, specifying the terms, trustees, beneficiaries, and purpose.

Trust's Purpose

The specific objectives or intentions for which a trust is established, guiding how the trust's assets are to be managed and used.

Constructive Trust

An equitable remedy resembling a trust, imposed by a court in order to benefit a party that has been unjustly enriched at another's expense, even though no actual trust has been created by the parties.