Leon Obtains an Insurance Policy That Will Replace a Portion

question 63

Multiple Choice

Leon obtains an insurance policy that will replace a portion of his monthly income from employment in the event that illness or injury causes a disability. This is

• A) disability insurance.
• B) liability insurance .
• C) illness and injury insurance.
• D) key-person insurance.

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Definitions:

Fixed Amount

A specific, unchanging quantity or sum, often used in financial contexts to denote a constant payment or investment.

Accounting Profits

The profit or loss recorded on a company's financial statements, calculated as revenues minus expenses and taxes.

Economic Profits

The difference between total revenue and total costs, considering both explicit and implicit costs.

Salary Offer

The amount of pay or compensation that an employer is willing to give an employee for their work.