Arnold buys a $25,000 participating whole life policy. He has a definite need for more life insurance but believes he cannot afford it. Which of the following dividend options would help to solve this problem automatically?
A) Applying dividends against premium payments
B) Using dividends to buy paid-up additions
C) Leaving dividends to accumulate at interest
D) Taking dividends in cash"
Ans: B) Using dividends to buy paid-up additions
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Dublin Company holds a 30% stake in Club Company which was purchased in 2015 at a cost of $3,000,000. After applying the equity method, the Investment in Club Company account has a balance of $3,040,000. At December 31, 2015 the fair value of the investment is $3,120,000. Which of the following values is acceptable for Dublin to use in its balance sheet at December 31, 2015?
I. $3,000,000 II. $3,040,000 III. $3,120,000 a. I, II, or III. b. I or II only. c. II only. d. II or III only.
Which of the following is a characteristic of cloud hosting?
A) Even the most reputable organizations do not offer security for cloud hosting. B) Organizations that hire cloud services run the risk of investing in technology that may become obsolete. C) Cloud-hosting offers a high degree of transparency on data backup and security. D) In cloud-hosting, the resources allotted to a client are scaled-up dynamically.