ACC 630 Milestone Three Guidelines and Rubric.pdf

Purpose of setting the trust for the entity:
Trust can be termed as the legal entity with the objective of acting as agent or trustee on the behalf of a person or any business entity with the main goal for the managing and transferring the asset to the beneficiary. The own trust was established by the various entities for the different purposes that includes when the entity is prospering at the higher rate and it is the requirement for the preservation and growth of the wealth and hence trust is formed to serve the purpose. The income of the entity has increased and the earnings of the entity are resulting in the larger profit which leads to additional burden of tax on the entity. Thus the other aim of forming the trust was to save the tax burden on its increased income. In addition to this when the entity is listed in the stock exchange and its shares are being traded in the exchange and thus the control of the asset can be transferred to some other person. Thus in order to save the ownership of the entity on the assets and right of conducting the operations in their own hands the entity establishes set up as running the business by the beneficiary of the trust. Generally beneficiary of the trust of any entity are founder and other members and thus the control of the entity will remain with the members and the business can be operated by retaining the control in spite of being listing of shares (Fredman, Josh).
Purpose of setting the...