Which of the following *best* describes the time horizon constraint of foundations and endowments?

**A)** Foundations may have an infinite life, whereas endowments always have finite lives. **B)** Foundations may have a finite life, whereas endowments typically have infinite lives. **C)** Endowments and foundations generally both have infinite lives.

**Your answer: B was incorrect. The correct answer was C)** Endowments and foundations generally both have infinite lives.

Foundations and endowments are generally established for infinite time horizons. ** There are some foundations that are required to spend down their assets in which case they would have a finite time horizon**. (Study Session 5, LOS 20.i)