If a Trust Is to Be Used for the Benefit

question 125

Multiple Choice

If a trust is to be used for the benefit individuals, private organizations or other governments, the following funds should be used:

• A) Special revenue fund.
• B) Permanent fund.
• C) Private purpose fund.
• D) Either A or B, depending upon whether the principal must be maintained.

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Definitions:

Diversity Jurisdiction

A principle in United States federal law allowing federal courts to hear cases where the parties are from different states or countries and the amount in controversy exceeds a specified threshold.

Federal Court

A court established under the federal government’s authority, with jurisdiction over matters specifically enumerated in the constitution or federal statutes.

Product Liability

The legal liability of manufacturers, sellers, and lessors of goods to consumers, users, and bystanders for injuries or damages that are caused by the goods.

Exclusive Jurisdiction

The power of a court to adjudicate a case to the exclusion of all other courts.