With a Simple Delivery Contract,when Is an Insurable Interest in the Buyer

question 48

Multiple Choice

With a simple delivery contract,when is an insurable interest in the buyer created?

• A)When the goods are identified to the contract
• B)When goods are identified to the buyer
• C)When money is transferred
• D)When the items are delivered
• E)When the buyer takes possession

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Definitions:

Paid-In Capital

The total amount of cash and other assets that shareholders have given a company in exchange for stock.

Retained Earnings

The accumulated portion of net income not distributed to shareholders and reinvested in the business.

Voting Rights

The rights of shareholders to vote on key corporate decisions, such as the election of the board of directors.

Preemptive Rights

The rights that give existing shareholders the opportunity to buy additional shares of a company's new stock issue before the public, maintaining their percentage of ownership.