Question 1 (2 points) Saved The essential benefit of an income trust is to
Question 1 options:
A provide fair returns to institutional investors such as insurance corporations and pension funds.
B reduce risk via a better diversification in assets.
C significantly reduce double taxation for investors.
D convert a regular corporation into another legal structure which obtains more operational efficiency.
Question 2 (2 points) Since depreciation/amortization in account books is treated as an expense item, it is tax-deductible when calculating tax liability. As a result, this is a real cash outflow to a firm.
Question 2 options: True
False