Greg Is the Owner and Beneficiary of a $100,000 Policy

question 18

Multiple Choice

Greg is the owner and beneficiary of a $100,000 policy on the life of his mother.Greg gives the policy to his brother,Don.Don subsequently pays premiums of $40,000.Upon his mother's death,how much of the insurance proceeds must Don include in income?

• A)$0
• B)$40,000
• C)$60,000
• D)$100,000

Recognize the role of consumer expectations and risk-utility analysis in product liability lawsuits.

Understand the concept of empowerment and its components.

Recognize the distinction between power and force, and understand different sources of power.

Identify the types and effects of power in organizational settings.

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Definitions:

Cultural Dimensions

The frameworks for understanding the differences in culture across societies, often used to compare national cultures and understand organizational behavior on a global scale.

Time Orientation

An individual's or culture's approach to time, focusing on past, present, or future events, and influencing behavior and decision-making.

Hofstede

A framework developed by Geert Hofstede that analyzes cultural differences through five dimensions: power distance, individualism vs. collectivism, masculinity vs. femininity, uncertainty avoidance, and long-term orientation.

Value of the Dollar

The purchasing power of the U.S. dollar, indicating how much goods and services it can buy, often relative to other currencies.