JY CHEN - Ask Anything, Learn Everything. Logo

In Business / College | 2025-07-03

Business insurance may be the source of funds for the business by the use of
A. Premiums.
B. Face amount.
C. Policy loans.
D. Dividends.

Asked by kmullins67

Answer (2)

Business insurance can be a funding source primarily through policy loans that allow access to the cash value of permanent life insurance policies. Premiums and face amounts do not provide direct funds, while dividends may not be reliable. Thus, policy loans are the most effective means for businesses to secure necessary funds. ;

Answered by GinnyAnswer | 2025-07-03

The answer is C. Policy loans , as they allow a business to borrow against the cash value of a permanent life insurance policy, providing a source of funds when needed. Premiums and face amounts do not directly generate funds, and dividends can be unreliable. Therefore, policy loans are the primary method through which insurance can help finance business needs.
;

Answered by Anonymous | 2025-07-04

Related Questions in Business

[Free] When the yield to maturity of a bond goes up, the price typically: A. is determined by market factors B. goes down C. does not change D. goes up

[Free] A type of life insurance policy that requires premiums only for a specified number of years or to a specific age is called a: A. term life policy B. limited pay policy C. key man insurance policy D. split dollar policy

[Free] Which of the following correctly explains how the concept of demand affects the change in use of credit? Select the two correct answers. A. High interest rates yield low demand for credit. B. Low interest rates yield high demand for credit. C. High interest rates yield high demand for credit. D. Low interest rates yield low demand for credit. E. Both low and high interest rates yield low demand for credit because consumers see it as an indicator that the market is not in equilibrium. Demand is highest when rates are neither too high nor too low.

[Free] A company is researching mining at four different land areas using different types of equipment. The table below shows the costs of land, equipment, mining, and reclamation for the four locations: | Locations | Cost of land | Cost of equipment | Cost of mining and reclamation | Time taken to mine the area | | --------- | ------------ | ----------------- | -------------------------------- | --------------------------- | | 1 | $100,000 | $10,000 | $5,000 per day | 30 days | | 2 | $35,000 | $6,000 | $4,500 per day | 45 days | | 3 | $30,000 | $7,500 | $3,500 per day | 120 days | | 4 | $40,500 | $8,000 | $7,000 per day | 65 days | Considering all costs, which location will cost the least for the company to mine? A. Location 1 B. Location 2 C. Location 3 D. Location 4

[Free] Internal-operational communications are messages that A. are circulated both inside and outside a business B. get an organization's work done C. are sent between competing organizations within the same industry D. employees send to discuss strictly personal matters