Which of the Following Defines an Annuity

question 14

Multiple Choice

Which of the following defines an annuity?

• A)For a fee,an insurance company provides you with regular income until you die.
• B)A surcharge is added to life-insurance premiums paid by persons in dangerous occupations.
• C)Annuity is another name for stock funds managed by mutual fund managers.
• D)Annuity is another name for any diversified portfolio.

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Definitions:

Purchasing Inventory

The process of acquiring goods and materials that a business sells or uses in its production process, an essential component of supply chain management.

Fixed Asset Sale

The process of selling long-term assets, such as property, plant, and equipment, for cash or other compensation.

Cash Increase

A rise in the amount of cash and cash equivalents held by a business.

Accounts Payable

Liabilities of a business representing money owed to creditors for goods and services purchased on credit.