Traditional risk management addresses all of the following EXCEPT:

Lisa exercised her automatic premium loan provision to pay her annual premium on her $50,000 life insurance policy. She died 4 months after the loan was taken, never having a chance to repay it. Which of the following statements is CORRECT?

A) The amount paid to Lisa's beneficiary as the death proceeds was reduced by the amount of the loan plus interest due. B) The type of insurance Lisa owned was term. C) The premium was paid by the insurance company from its reserves. D) The policy was canceled, since the loan was not repaid."

When a seller is exposed to continued risks of ownership through return of the product, the seller should recognize revenue:

A. when all return privileges have expired. B. immediately, but reduce revenue by an estimate of future returns. C. at the time of sale and account for returns as they occur. D. at the time of sale only if 6 specific conditions are met.