The Fundamental Purpose of a Variable Annuity Is

question 37

Multiple Choice

The fundamental purpose of a variable annuity is

• A)to provide funding flexibility to the purchaser.
• B)to provide a hedge against inflation.
• C)to fund the purchase of cash value life insurance.
• D)to guarantee a fixed-dollar benefit throughout retirement.

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Definitions:

Stockholders

Individuals or entities that own shares in a corporation, giving them partial ownership and possibly dividends based on the company's performance.

Profit Maximization

A process or strategy used by businesses to achieve the highest possible profit, considering revenue and costs.

Shirking

The behavior of avoiding work or responsibilities, often seen in employment contexts where workers may not perform their duties optimally.

Worker's Output

The quantity of goods or services produced by an employee within a certain period of time.