Which of the Following Statements Is True

question 32

Multiple Choice

Which of the following statements is true?

• A)Transfers to an irrevocable trust can be deemed incomplete due to powers retained by the grantor.
• B)If the donor retains the power to change the trust beneficiary, the gift is complete.
• C)Transfers to a revocable trust are completed gifts.
• D)All of the above are false.

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Definitions:

Project

A planned set of interrelated tasks to be executed over a fixed period and within certain cost and other limitations.

Variable Cost

Financial obligations that are directly tied to the scale of manufacturing or sales, involving components such as labor and materials.

Fixed Cost

Costs that remain consistent regardless of the amount of goods produced or sold, including expenses like salaries or rent.

Capital Budgeting

The process by which a business evaluates and selects long-term investments that are expected to yield returns that exceed the costs of financing.