One of the Primary Advantages of Purchasing a Variable Annuity

question 29

Multiple Choice

One of the primary advantages of purchasing a variable annuity is that it provides:

• A) Guaranteed income
• B) No exclusion ratio
• C) An inflation hedge
• D) B and C
• E) A, B, and C

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Definitions:

Incrementalism

A policy or strategy of making gradual changes or taking small steps instead of large, drastic actions.

Emergent Strategies

Emergent strategies develop over time as managers learn from and respond to experience.

Managerial Learning Curve

The process by which managers gain experiential knowledge that improves their decision-making, efficiency, and effectiveness over time.

Unrelated Diversification

A business strategy where a company expands into industries or markets that are not related to its existing business activities.