Life Insurance Companies Tend to Invest Excess Funds in Short-Term

question 73

True/False

Life insurance companies tend to invest excess funds in short-term securities,while pension funds tend to invest excess funds in long-term securities.

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Definitions:

Control

The power to direct the management and policies of a company through ownership of its shares, rights, or contractual arrangements.

Noncontrolling Interest

Refers to the ownership stake in a corporation that is less than the majority control, often represented by shareholders who do not have a significant influence over the company's operations.

Goodwill

Goodwill represents the intangible value of a business that exceeds its physical assets' value, often arising after the acquisition of one company by another.