Fab Is the Owner and Manager of a Business Trust

question 38

Multiple Choice

Fab is the owner and manager of a business trust. Gilly is the benefici?ary. Responsibility for the debts and obligations of the trust rest with

• A) Fab and Gilly.
• B) Fab only.
• C) Gilly only.
• D) neither Fab nor Gilly.

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Definitions:

Loan

is a sum of money borrowed that is expected to be paid back with interest.

Receivables

Money owed to a business by its customers for goods or services that have been delivered or sold but not yet paid for.

Unsecured

Refers to a loan or credit that is not backed by collateral, meaning the lender takes on more risk and relies on the borrower's creditworthiness.

Internal Audits

Evaluations conducted by a company's own staff to assess its systems, controls, and operations for efficiency, effectiveness, and compliance.