Hannah runs a hospitality business with Ray and Susan, backed by a group of investors who provide the funding but rely on Hannah

Question

3 years ago

9

and company to operate the business. What term best describes this type of business arrangement

1 answer:

12345 [234] · Answer 1 · 2022-05-13T01:53:57+03:00

Answer:

A trust

Explanation:

A trust is a kind of business that acts as a fiduciary or a trustee of property on behalf of another party.

Typical functions of a trust includes administration and management of the business.

The assets are eventually meant to be transferred to another person.

In the given scenario Hannah is running a hospitality business which she recieve backing from investors.

The investors have entrusted Hannah with the running of the business. So this is a trust