The main purpose of creating a trust is to
I.separate ownership from control.
II.avoid legal liability.
III.avoid taxes.
IV.improve a firm's reputation.

Question

Quizplus · Accepted Answer

The main purpose of creating a trust is to separate ownership from control (I) and avoid taxes (III). Although a trust may also help a firm's reputation, this is not the main purpose of creating a trust and avoiding legal liability (II) may be a consideration but not the primary reason for creating a trust. Therefore, the best choice is C.

The Main Purpose of Creating a Trust Is to