Question

How were small businesses in trusts treated unfairly?

Answer 1

they received few profits

Answer 2

The correct answer is they received few profits.

The small businesses in trusts were treated unfairly because they received few profits.

A trust -a person or a company- is a legal business structure where a figure called “trustee” fulfill the business on behalf of the beneficiaries or trust’s members. There are two types: discretionary or unit trusts.

Some advantages of a trust: the assets are protected, the flexibility of asset and the distribution of income. Disadvantages: complexity to administrate, difficult to dissolve, and it cannot distribute losses, only profits.