Question

The biggest difference between a private purpose trust fund and a permanent fund is

a. Permanent funds have nonexpendable principles, while private purpose trusts do not
b. Both of the statements are true
c. Private purpose trust funds created to benefit a private purpose or individual, while a permanent fund tends to benefit the general public
d. Neither of the statements are true

Answer 1

The biggest difference between a private purpose trust fund and a permanent fund is the specific beneficiaries and purposes they serve. Private purpose trust funds benefit individuals or specific organizations, while permanent funds benefit the general public through public projects or services.

Step-by-step explanation:

The biggest difference between a private purpose trust fund and a permanent fund is that private purpose trust funds are created to benefit a private purpose or individual, while a permanent fund tends to benefit the general public. Private purpose trust funds are established for specific purposes such as education, healthcare, or charity, and the beneficiaries are typically named individuals or organizations. On the other hand, permanent funds are created to provide long-term financial support for public projects or services, such as infrastructure development or public welfare.