Abusiness trusttypically acquires the operating assets of businesses such asrestaurants, which generate predictable and steady cash flows. Business trusts focus on distributing income to unitholders, and restaurant operations align well with this goal due to their recurring revenue models.
Explanation of Options:
A. Senior Housing: More common for real estate investment trusts (REITs), not business trusts.
B. Restaurants: Correct. Restaurants are suitable for business trusts because of their stable cash flow potential.
C. Industrial Rentals: Typically under REITs, not business trusts.
D. Shopping Centres: Also more commonly associated with REITs.
References:
CSC Volume 2, Chapter 22: Business trusts and the types of operations they typically invest in.
Contribute your Thoughts:
Chosen Answer:
This is a voting comment (?). You can switch to a simple comment. It is better to Upvote an existing comment if you don't have anything to add.
Submit