What is the primary asset of the S Trust?

• A. A diversified portfolio of equities
• B. Commercial real estate generating net rental income
• C. Cash and cash equivalents
• D. Intellectual property rights

Answer: (B)

The main idea is that the primary asset is the one that provides the bulk of the trust’s value and cash flow. For the S Trust, that asset is the commercial real estate it owns and rents out. The property itself is what generates net rental income after expenses, so it serves as the core asset driving the trust’s income and value.

If the trust were focused on stocks, the diverse equity portfolio would be its core asset; if it held mostly cash, liquidity would be the main asset; if it relied on intellectual property, the IP rights would be the core asset. None of those align with a real estate-focused model, where the key asset is commercial property producing net rental income.