The form of business structure most likely to be used where assets are held for the benefit of other parties is a:
A) company.
B) trust.
C) sole trader.
D) partnership.

Question

Quizplus · Accepted Answer

A trust is a legal arrangement where assets are managed for the benefit of other parties, known as beneficiaries. This makes it the most appropriate form of business structure when assets are held for the benefit of other parties. Companies, sole traders, and partnerships are not designed for this purpose. A company creates a separate legal entity; sole traders operate as individuals; and partnerships involve two or more people in a common business venture.

The Form of Business Structure Most Likely to Be Used