Classify Each of the Following Statements

question 128

Multiple Choice

Classify each of the following statements.
-Maggie purchased an insurance policy on Jim's life and designated Susan as the beneficiary.

• A)No taxable transfer occurs.
• B)Gift tax applies.
• C)Estate tax applies.

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Definitions:

Lowball Technique

A persuasive tactic in which an initially favorable offer is made, but then terms are changed to be less favorable once initial commitment is achieved.

Reciprocity Norm

A social norm that expects individuals to respond to each other in kind, favoring actions that have been beneficial to them.

Fact Sheet

A concise presentation of key information, data, and statistics on a specific subject, often arranged for quick reference.

Prejudice

Preconceived opinion not based on reason or actual experience, often directed towards people or groups.