Assets managed by a board that benefits another are typically held in a

• A. Endowment
• B. General fund
• C. Special account
• D. Trust fund

Answer: (D)

Assets managed by a board for the benefit of others are held in a trust fund because the board acts as a fiduciary, keeping those resources separate from ordinary operations and using them only for the designated beneficiaries or purposes. This arrangement protects the assets and ensures they’re managed according to the trust’s terms. Endowment funds also involve assets set aside for a purpose, but they’re typically long-term investment pools intended to provide ongoing support, often in nonprofit settings, rather than the specific fiduciary arrangement implied here. A general fund covers day-to-day operating resources, not assets dedicated to a third party. A special account is a separate tracking line for restricted monies within a department and doesn’t convey the formal fiduciary relationship that defines a trust fund.