Your Second Step in Determining a Life Insurance Program Should

question 50

Multiple Choice

Your second step in determining a life insurance program should be to

• A) consult a local insurance company agent.
• B) consider whether you wish to leave your dependants debt free
• C) estimate your life insurance requirements.
• D) determine your life insurance objectives.
• E) evaluate the ratings of the insurance company.

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Definitions:

Equipment Purchase

The act of acquiring capital equipment for business use, often involving a significant investment.

Variable Cost

Costs that vary directly with the level of production or volume of sales.

Fixed Costs

Expenses that do not change with the level of production or sales in the short term, such as rent, salaries, and insurance.

Break-even Point

The point at which total costs and total revenues are equal, resulting in no net loss or gain.