Business trusts provide some security in case of bankruptcy by:
A) legally separating the trust from the business that is the beneficiary of its assets
B) legally combining the trust and the business that is the beneficiary of its assets
C) making it illegal to sue the business
D) making it illegal to sue the trust
E) none of the other choices are correct

Question

Quizplus · Accepted Answer

Business trusts provide security in case of bankruptcy by legally separating the trust from the business that is the beneficiary of its assets. This means that if the business goes bankrupt, the trust's assets would not be affected and could be used to pay off creditors or distributed to beneficiaries as outlined in the trust agreement.

Business Trusts Provide Some Security in Case of Bankruptcy By