For Most Individuals,which Item Below Is an Example of a Lifestyle

question 102

Multiple Choice

For most individuals,which item below is an example of a lifestyle asset?

• A)100 shares of IBM stock
• B)$2,000 in a savings account
• C)$10,000 vested interest in an employer's retirement plan
• D)A new car

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Definitions:

Creditor Beneficiaries

A third party who benefits from a contract made between two other parties, specifically when the contract's purpose is to repay a debt.

Contract

A legally binding agreement between two or more parties that outlines rights and duties each party has agreed to.

Valid

A term applied to a contract that includes all four elements of a contract—agreement (offer and acceptance), consideration, contractual capacity, and legal object—and thus is enforceable.

Recognizable Beneficiaries

are individuals or entities that can clearly be identified as intended to benefit from a contract, trust, or legal arrangement, even if not directly party to it.