Final answer:
The claim that a trust organization as a trustee cannot engage in self-dealing is true. Proprietors of proprietary colonies had multiple responsibilities beyond collecting profits, making the statement false. The trustee system was indeed supervised by a royal governor, which is true.
Step-by-step explanation:
The statement that a trust organization serving as a trustee is prohibited from engaging in any activities that would constitute self-dealing is TRUE.
In the context of trust law, a fiduciary who manages a trust has an exclusive duty of loyalty to the beneficiaries. This means that they must put the interests of the beneficiaries above their own and avoid conflicts of interest, which includes refraining from self-dealing, where the trustee might benefit personally from transactions made within the trust. Compliance with these fiduciary duties is essential to ensure the integrity of the trust administration and protect the beneficiaries.
In contrast to the fiduciary responsibility in trust law, the concept of a proprietary colony involves proprietors who had multiple responsibilities, not solely to collect profits. In historical context, proprietors were responsible for overseeing the colony's governance, development, and were answerable to the Crown or charter agreements. This makes the claim that proprietors "have no responsibilities except to collect the profits" FALSE.
Additionally, referring to the trustee system during the colonial era, it is also TRUE that the trustee system was overseen by a royal governor, as stated with the Savannah example, indicating that trustees had governance responsibilities and were not solely profit-focused.