An income trust is an investment where ownership is expressed as an interest in a limited partnership. This means that investors contribute capital to a partnership (the trust) that holds investments generating income, and the income is distributed to the partners (investors). The trust structure provides certain tax advantages and can be used to invest in a variety of sectors, such as real estate, energy, and infrastructure.

Solved

An Income Trust Is

Question 85

Multiple Choice

An income trust is

A) an investment where ownership is expressed as an interest in a limited liability partnership.
B) an investment where ownership is expressed as an interest in a limited partnership.
C) an investment in a bank or trust company.
D) an investment where you trust that your broker will ensure that you receive income.
E) an investment where you have total ownership in a limited liability partnership.

Correct Answer: