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:

Swaying Footbridge

A scenario referring to an unstable or moving footbridge, often used in studies to measure stress response or fear-induced attractions.

Social Exchange Theory

A theory suggesting that human relationships are formed by the use of a subjective cost-benefit analysis and the comparison of alternatives.

Altruistic Behavior

Action taken to benefit others without expecting personal gains, driven by selfless concern for the well-being of others.

Reciprocity Norms

Social norms that dictate that we should treat others as they treat us, leading to mutual benefit or support.