Which of the Following Represent Valid Reasons for Business Use

question 31

Multiple Choice

Which of the following represent valid reasons for business use of life insurance?

• A) Fund a non-qualified retirement plan for top executives
• B) Protect business loss due to the pre-mature death of a key marketing executive
• C) Offer life insurance benefits as part of a key executive package in order to attract new hires
• D) Create a business transition plan from one partner to the other partner
• E) All of the above are valid reasons

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Definitions:

Beginning Inventory

The value of all the inventory held by a company at the start of an accounting period, used to calculate the cost of goods sold.

Net Purchases

The total amount of purchases made by a business after subtracting returns, allowances, and discounts.

Net Purchases

Net Purchases refers to the total amount of purchases made by a company after subtracting any returns, allowances, and discounts received.

Ending Inventory

is the total value of goods available for sale at the end of an accounting period after accounting for all additions and subtractions during the period.