What Is a Life Insurance Policy Paid for by the Business

question 118

Multiple Choice

What is a life insurance policy paid for by the business and naming the company as beneficiary if the employee dies?

• A) business interruption insurance
• B) key person life insurance
• C) professional liability insurance
• D) fidelity insurance

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Definitions:

Lessor

An entity that leases property or equipment to a lessee in exchange for rental payments.

Conditional Sales Agreement

An agreement where the sale is contingent on meeting specific conditions, such as the buyer making all payments as agreed.

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a specific point in time, giving a snapshot of its financial condition and liquidity.

Payment Schedule

A plan that outlines the dates and amounts for payments due over a period.