Assume that an entrepreneur signs an agreement with a bank wherein the bank holds title and ownership of the entrepreneur's business and will transfer that title and ownership to the entrepreneur's child when the child reaches the age of 21. This kind of an arrangement is known as
A) a limited partnership.
B) a corporation.
C) a trust.
D) a business valuation plan.
E) None of the above.

Question

Quizplus · Accepted Answer

This kind of an arrangement is known as a trust, where the bank acts as a trustee and holds title and ownership of the entrepreneur's business until it is transferred to the entrepreneur's child when they reach the age of 21.

Assume That an Entrepreneur Signs an Agreement with a Bank