Final answer:
The statement about revenues being restricted for a particular purpose and leading to the creation of a private purpose trust fund is true. However, the statement that proprietors in a proprietary colony only collect profits is false, as they have administrative responsibilities as well.
Step-by-step explanation:
When revenues are legally restricted by external resource providers or committed by enabling legislation for particular operating purposes, a private purpose trust fund is indeed created. So the statement is true. These funds are used for specified purposes and often benefit specific private individuals or entities. For example, a municipality may establish a trust fund to manage donations meant for a city’s public library, ensuring the funds are used solely for library-related expenses.
Regarding a proprietary colony, the statement that the Proprietors have no responsibilities except to collect the profits is false. Proprietors of a proprietary colony were responsible for the administration, governance, and welfare of the colony, in addition to looking after its economic interests.