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:

Emotion Script

Predefined patterns or sequences of emotional responses expected in certain situations or contexts.

Somatic Marker Hypothesis

The theory that emotional processes guide (or bias) behavior, particularly decision-making, via bodily feelings.

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