Using the Earnings Multiple Approach Is Determining the Present Value

question 223

True/False

Using the earnings multiple approach is determining the present value of an annuity as a means to determine the face value of the insurance policy one needs to purchase.

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Definitions:

Employment at Will

A doctrine in labor law that allows employers to terminate employees for any reason, unless it is illegal or violates an employment contract.

Common Law Doctrine

A principle or precedent set by previous court decisions, forming part of the body of law in common law jurisdictions, as opposed to statutory law.

Contract or Statute

Legal documents that establish rights and obligations; a contract is an agreement between parties, while a statute is a law enacted by a legislative body.

Vicarious Liability

A legal principle that holds an entity or individual responsible for the actions of another party, typically in an employer-employee relationship.