The Use of the Multiple Approach for Calculating a Lump

question 12

Essay

The use of the multiple approach for calculating a lump sum benefit to be taken out pursuant to a life insurance policy has been strongly criticised as being too simplistic in nature. Outline the basis for such criticism.

---

Definitions:

Reporting Entity

An organization or unit for which financial statements are prepared to reflect its economic activities and condition.

Direct Emissions

Emissions released straight into the atmosphere from a source owned or controlled by an entity, such as emissions from factory stacks or company vehicles.

GHG Sources

Points of origin from where greenhouse gases are emitted into the atmosphere, often related to energy production, transportation, and industry.

Supply Chain

The network of all the individuals, organizations, resources, activities, and technology involved in the creation and sale of a product, from the delivery of source materials from the supplier to the manufacturer, and on to its eventual delivery to the end user.