Which of the Following Is NOT a Factor That Affects

question 63

Multiple Choice

Which of the following is NOT a factor that affects the price a company charges for a life insurance policy?

• A) The company's cost of doing business.
• B) The return on its investments.
• C) The mortality rate it expects among its policyholders.
• D) The policy features.
• E) All of these affect the price.

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Definitions:

Employee Discounts

Reduced prices offered to employees by their employer as a part of their employment benefits or incentives.

Periodic Inventory System

An inventory accounting system where updates to inventory records are made on a periodic basis, not continuously.

Physical Inventory

A process of counting and verifying the actual inventory on hand at a business location, typically performed at the end of an accounting period.

Merchandise Purchases

Transactions involved in buying goods for resale in the normal course of business, typically constituting a significant expense for retail companies.