The Settlement Option in Which the Company Acts as Trustee

question 9

Multiple Choice

The settlement option in which the company acts as trustee and pays interest to the beneficiary is called

• A) Lump-sum payment.
• B) Limited installment payment.
• C) Final life payment.
• D) Life income option.
• E) Proceeds left with the company.

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Definitions:

Treasury Stock

Shares that were issued and later reacquired by the issuing corporation.

Par Value

The nominal or face value of a bond, share, or other financial instrument, as stated by the issuer.

Income Statement

The income statement is a financial report that shows a company's revenues, expenses, and profits or losses over a specific period of time.

Treasury Stock-Common

Shares that were once outstanding and have been bought back by the issuing company, reducing the amount of available stock on the open market.