Question

Firms in a trust: Group of answer choices do not allow a small number of trustees to make decisions for participating firms. act in their own self interests. act as a single firm. trust each other.

Answer 1

act as a single firm.

Step-by-step explanation:

A trust can be defined as a fiduciary relationship between two party in which one of the parties referred to as a grantor (trustor) grants another party known as the trustee, the express permission, right or authority to hold title to assets or properties for the benefit of a third party. Also, this third party is typically referred to as a beneficiary.

This ultimately implies that, a trust refers to a fiduciary entity that is mainly focused on holding and administering a corpus for other individuals or third parties (beneficiaries).

All business firms in a trust act as a single firm (trustee) because they are not dependent on other firms in terms of decision making and control of their assets.