Albert Had a Terminal Illness That Would Require Almost Constant

question 18

Multiple Choice

Albert had a terminal illness that would require almost constant nursing care for the remaining two years of his estimated life, according to his doctor.Albert had a life insurance policy with a face amount of $100,000.He had paid $25,000 of premiums on the policy.The insurance company has offered to pay him $80,000 to cancel the policy, although its cash surrender value was only $55,000.He accepted the $80,000.Albert used $15,000 to pay his medical expenses.Albert made a miraculous recovery and lived another 20 years.As a result of cashing in the policy:

• A)Albert must recognize $55,000 of gross income, but he has $15,000 of deductible medical expenses.
• B)Albert must recognize $65,000 ($80,000 - $15,000) of gross income.
• C)Albert must recognize $40,000 ($80,000 - $25,000 - $15,000) of gross income.
• D)Albert is not required to recognize any gross income because of his terminal illness.
• E)None of these.

Apply the concept of minimum efficient scale in the context of firm size and cost management.

Identify the factors contributing to economies of scale and how they affect firm production and costs.

Analyze the operational and managerial challenges leading to diseconomies of scale.

Explain the significance of technological advancements on production costs.

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Definitions:

Corporate Voice

refers to the collective expression or personality of a company communicated through its messages, branding, and public statements.

Business' Purpose

The underlying intention or mission that guides a company's operations, typically centered around creating value for customers, employees, and other stakeholders.

Societal Issues

Problems that affect a significant number of people within a society, which are often complex and require collective effort to address.

Environmental Issues

Problems related to the natural environment, such as pollution, climate change, and biodiversity loss, often requiring global action and sustainable practices.