All of the Following Statements About Group Short-Term Disability Income

question 48

Multiple Choice

All of the following statements about group short-term disability income plans are true EXCEPT

• A)Most plans have a short elimination period for accidents but cover sickness from the first day of disability.
• B)Disability is usually defined in terms of the employee's own occupation.
• C)The amount of disability income benefits typically is equal to some percentage of a worker's normal earnings.
• D)Most short-term plans cover nonoccupational disability only.

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Definitions:

Goodwill

An intangible asset that arises when a business is acquired for more than the fair value of its identifiable net assets, reflecting aspects like brand reputation, customer relations, and patents.

Business Combination

A merger or acquisition in which an acquirer purchases the assets or shares of another business.

Future Cash Flows

Future cash flows refer to the projected flows of cash into and out of a company or project, vital for assessing its financial health and potential for growth or sustainability.

Value In Use

The present value of the future cash flows expected to be derived from an asset or cash-generating unit.