Which of the Following Statements Is True

question 3

Multiple Choice

Which of the following statements is true?

• A)Ordinary life insurance involves policies marketed on an individual basis, on which policyholders make periodic premium payments.
• B)Ordinary life insurance involves policies marketed on an individual basis, on which policyholders make a lump sum payment at maturity of the policy.
• C)Ordinary life insurance involves policies marketed on an individual basis, on which policyholders receive periodic premium payments.
• D)Ordinary life insurance involves policies marketed on an individual basis, on which policyholders receive a lump sum payment at maturity of the policy.

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Definitions:

Variable Costs

Charges that fluctuate in accordance with the amount of output.

Average Price

The mean price of a good or service calculated by dividing the total cost by the number of units sold.

Variable Costs

Costs that vary with the level of output produced.

Fixed Costs

Business expenses that remain constant regardless of the level of production or sales.