All of the Following Are Defects Which Limit the Usefulness

question 61

Multiple Choice

All of the following are defects which limit the usefulness of the human life value approach in determining the correct amount of life insurance to purchase EXCEPT

• A)The effects of inflation are ignored.
• B)Other sources of income for survivors are ignored.
• C)Earnings are assumed to remain constant.
• D)Earnings during the individual's productive lifetime are ignored.

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Definitions:

Planning Budget

A financial plan that estimates future revenues, expenses, and other financial needs for a specific period.

Customers Served

The total number of clients or customers that a business or facility has provided services or goods to within a specific period.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels within a business.

Customers Served

The number of individual clients or customers that a business has provided products or services to within a specific timeframe.