Which of the Following Is True Regarding the Contention of ABC

question 21

Multiple Choice

Which of the following is true regarding the contention of ABC Insurance that it is not required to pay to Image Company the amount for which Bruno's life was insured?

• A) ABC Insurance Company is incorrect because Image Company held an economic interest in Bruno's life at the time the insurance was purchased.
• B) ABC Insurance Company is correct because Image Company no longer had an economic interest in Bruno's life.
• C) ABC Insurance Company is correct only if Bruno's new employer had purchased life insurance on his life.
• D) ABC Insurance Company is incorrect because Image Company had an economic interest in Bruno based on his possession of the jeep that Image Company still owned.
• E) ABC Insurance Company is incorrect only if Image Company owed Bruno retirement or some other sort of benefit.

---

Definitions:

Revenue

The sum of money a company earns from its sales of products or services before deducting any costs.

Flexible Budget

An adjustable budget that shifts depending on changes in levels of volume or activity.

Patient-Visits

A metric used in healthcare to quantify the number of interactions or consultations patients have with healthcare professionals or facilities.

Activity Measure

An activity measure, often used in cost accounting, quantifies the amount of work performed or the level of production activity achieved.