Dana loans her brother, Marcus, $500,000 with which to start a movie production company. The business assets are shown in the loan agreement as collateral for the loan. Dana can insure Marcus's life because:
A) the principle of insurable interest exists in this situation
B) the principle of utmost good faith exists in this situation
C) she and Marcus are brother and sister
D) This is a trick question; she cannot insure his life, but she can insure the business assets.
A
You might also like to view...
Complete the statement, using the following terms: increase, decrease, or have no effect on. Increases in sales price per unit ________ contribution margin per unit and ________ the breakeven point.
What will be an ideal response?
The objective of transfer pricing is to encourage each division manager to transfer goods and services between divisions if overall company income can be increased by doing so
Indicate whether the statement is true or false
The disassociation of a member from a term LLC (limited liability company) before the expiration of the specified term is wrongful
Indicate whether the statement is true or false
Which of the following would be considered an advantage of operating one’s own business?
a. long hours b. increased family time c. risk d. irregular income e. personal gratification