A life insurance policyholder may no longer need life insurance. Such a policyholder may sell the policy to a third party for more than its cash value
The purchaser becomes the new beneficiary and is responsible for subsequent premium payments. Such a financial transaction is called a(n)
A) collateral assignment.
B) accelerated death benefits rider.
C) absolute assignment.
D) life settlement.
Answer: D
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Gion Company is considering eliminating its windows division, which reported an operating loss for the recent year of $105,000. Division sales for the year were $1,110,000 and its variable costs were $975,000. The fixed costs of the division were $220,000. If the windows division is dropped, 65% of the fixed costs allocated to it could be eliminated. The impact on Gion's operating income from eliminating this business segment would be:
A. $8,000 decrease B. $7,200 decrease C. $143,000 increase D. $8,000 increase E. $143,000 decrease
Williamson says that market failure problems that result from contracting through vertical integration can be solved through ______, _____ and _____.
a. Organizational design/innovation/creative destruction b. Information flows/negotiating costs/incentive alignment c. Managing uncertainty/being boundedly rational/being fast to market d. None of the above
Brandon's computer shop is considering two different configuration options. The first one is to have each computer built by the sales associates when they have free time. The second option is to hire a dedicated assembly technician
Option A has variable costs of $50 per computer and no fixed costs. Option B has a fixed cost of $1,000 but variable costs of only $5 per computer. What is the cross-over point?
The Sarbanes-Oxley Act of 2002 applies to corporations whose shares are publicly traded in the United States.?
Indicate whether the statement is true or false