Which of the Following Is a Reason That Social Insurance

question 52

Multiple Choice

Which of the following is a reason that social insurance programs exist?

• A)to compete with private insurance programs
• B)to provide a base of economic security
• C)to provide needs-tested benefits to low-income individuals
• D)to reduce involvement of the government in insurance markets

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Definitions:

Voting Stock

Shares that grant the shareholder the right to vote on corporate matters, such as the election of the board of directors.

Foreign Corporation

A company that is incorporated in a country outside of where it operates or conducts its business.

Inventory

Assets held for sale in the ordinary course of business, in the process of production for such sale, or in the form of materials or supplies to be consumed in the production process or in the rendering of services.

Consolidated Income Tax Return

A single income tax return filed by a parent company and its subsidiaries, considered as one entity for tax purposes.