Why Would the Owners of a Successful Business Operation Carry

question 38

Multiple Choice

Why would the owners of a successful business operation carry life insurance on the lives of its shareholders?

• A) to ensure that the business doesn't suffer financial loss from business interruption
• B) to offset any deficiency in the value demanded for the deceased's shares
• C) to offset the challenging costs of buying out a deceased shareholder's shares
• D) to comply with the law's mandatory life insurance pertaining to shareholders

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Definitions:

Trade Deficit

A situation where a country's imports of goods and services exceed its exports, leading to a net outflow of domestic currency to foreign markets.

Remained

Stayed in the same place or condition; continued to be.

Doubled

Increased by 100 percent or made twice as large in size, amount, or number.

Quadrupled

To increase fourfold, or to become four times as large in quantity or value.