Pre-death distributions from a modified endowment contract (MEC) receive different tax treatment than other life insurance policies because
A) the MEC has tax deductible premiums
B) the MEC is considered an illegal product
C) the MEC tends to be an investment vehicle
D) the MEC does not accumulate cash value
Ans: C) the MEC tends to be an investment vehicle
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Use the information in Table 5.2. Using the traditional method, what is the profit if the company manufactures the optimal product mix (consider variable costs only–overhead is not included in this profit calculation)?
A) less than or equal to $6,500 B) greater than $6,500 but less than or equal to $6,700 C) greater than $6,700 but less than or equal to $6,900 D) greater than $6,900
Would MGRM have had the same cash flow problems if it had been able to buy and sell energy derivatives in the forward market (i.e., rather than using the futures market to cover its net forward positions)?
What will be an ideal response?