Identify the correct term for the following definition: It is any asset donated to and for the perpetual benefit of a non-profit institution. The donation is usually made with the requirement that the principal remain intact and money earned from investing the principal be used for a specific purpose.

Scholarship fund

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Sinking fund

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Endowment

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None of these

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Solution

The correct option is C Endowment
"It is any asset donated to and fro for the perpetual benefit of a non-profit institution. The donation is usually made with the requirement that the principal remain intact and money earned from investing the principal be used for a specific purpose".
Correct term for he above defination is the Endowment.

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