If a State Has Adopted the Revised Uniform Principal and Income

question 76

Multiple Choice

If a state has adopted the Revised Uniform Principal and Income Act, which of the following statements is correct?

• A)The state law definition of trust income will preempt any other definitions.
• B)The definition of trust income in the trust document will preempt all other definitions.
• C)Under state law, tax-exempt interest will not be allocated to income.
• D)The definition of principal in the trust document must classify capital gains as principal.

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Definitions:

Specialized Knowledge

Refers to expertise or skills in a specific area or field, allowing individuals to perform tasks with high efficiency and quality.

Legitimate Power

Authority that arises from a formal position or role within an organization, leading others to comply because it is seen as rightful and accepted.

Strategic Contingency Theory

A theory suggesting that an organization's success is based on its ability to adapt to changes in the environment through strategic decisions.

Developing Power Contacts

The act of building and maintaining relationships with influential individuals or key persons in one's industry or field to advance one's career or personal interests.