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:

Receivables Financing

A form of financing where a company uses its accounts receivable as collateral to obtain a loan or advance, improving cash flow.

Variable Cost Per Unit

The cost that varies with the level of output or production, such as materials and labor, calculated on a per unit basis.

Monthly Interest Rate

Monthly interest rate refers to the percentage of interest that is charged or earned on a loan or investment for each month.

Net 30 Policy

A payment term that indicates the buyer must pay the full amount due within 30 days of the invoice date.