CSI CSC2 Exam - Topic 1 Question 13 Discussion

Actual exam question for CSI's CSC2 exam

Question #: 13
Topic #: 1

[All CSC2 Questions]

A business trust would typically purchase the underlying company assets of which type of operation?

ASenior housing

BRestaurants

CIndustrial rentals

DShopping centres

Show Suggested Answer

Suggested Answer: B

A business trust typically acquires the operating assets of businesses such as restaurants, 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.

CSC Volume 2, Chapter 22: Business trusts and the types of operations they typically invest in.

by Fannie at Apr 12, 2026, 01:37 PM

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Karrie

2 days ago

I remember practicing a question about real estate investments, and I think industrial rentals were mentioned as a common asset type for trusts.

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Emerson

7 days ago

I think a business trust would likely invest in shopping centres, but I'm not entirely sure why that is the case.

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