In a tenants in common arrangement, what is true about the ownership of the account?

In a tenants in common arrangement, what is true about the ownership of the account?

• A. Each owner has equal shares
• B. Only one owner can make investment decisions
• C. Each owner can execute transactions as per their ownership percentage
• D. All decisions require unanimous consent

Answer: (C)

In a tenants in common arrangement, each owner has a distinct share of the ownership in the account, and these shares can vary in size among the owners. This form of ownership allows each owner to execute transactions in accordance with their ownership percentage. For example, if one owner holds a larger share, they would have the capacity to conduct transactions proportional to that share, while the other owners would have similar rights to act based on their respective ownership interests. This flexibility is a key feature of tenants in common arrangements, empowering each owner to manage their part of the investment independently. The other options do not accurately represent the characteristics of a tenants in common arrangement. Equal shares do not need to be a requirement, and ownership can be unequal. Additionally, the structure allows multiple owners to make investment decisions independently rather than requiring a single decision-maker or unanimous consent for every action. The arrangement fosters a level of autonomy among the owners that reflects their individual stakes in the investment.

In a tenants in common arrangement, each owner has a distinct share of the ownership in the account, and these shares can vary in size among the owners. This form of ownership allows each owner to execute transactions in accordance with their ownership percentage. For example, if one owner holds a larger share, they would have the capacity to conduct transactions proportional to that share, while the other owners would have similar rights to act based on their respective ownership interests. This flexibility is a key feature of tenants in common arrangements, empowering each owner to manage their part of the investment independently.

The other options do not accurately represent the characteristics of a tenants in common arrangement. Equal shares do not need to be a requirement, and ownership can be unequal. Additionally, the structure allows multiple owners to make investment decisions independently rather than requiring a single decision-maker or unanimous consent for every action. The arrangement fosters a level of autonomy among the owners that reflects their individual stakes in the investment.