Which of the Following Statements About the Traditional Net Cost

question 17

Multiple Choice

Which of the following statements about the traditional net cost method of measuring the cost of life insurance is (are) true?
I.The traditional net cost method does not consider the time value of money.
II.The traditional net cost method can show that life insurance has a negative cost.

• A)I only
• B)II only
• C)both I and II
• D)neither I nor II

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Definitions:

Economic Espionage Act

A U.S. law that makes the theft or misappropriation of a trade secret a federal crime when intended to benefit a foreign government, foreign instrumentality, or foreign agent.

Trade Secrets

Confidential business information that provides an enterprise a competitive edge and is often not disclosed to the public.

Misappropriations

involves the wrongful, illegal, or unauthorized use of funds or assets for purposes other than those intended by the owner or rightful possessor.

World Trade Organization

An international organization that deals with the rules of trade between nations, aiming to ensure that trade flows as smoothly, predictably, and freely as possible.