Konrad is the owner of CrossBoy, a manufacturing company employing over 50 employees. Konrad recently took out a $500,000 loan to expand his business. Terrence works as a sales manager and is responsible for roughly 40% of the company's revenue. Konrad recognizes the importance of Terrence's contributions to the success of the company. Therefore, in addition to a sizeable base salary, CrossBoy also pays Terrance regular performance-based bonuses. Konrad understands that if Terrence dies prematurely, CrossBoy would suffer financially. What should he do to protect his company? Select one correct answer from the list 1. 2. Offer Terrence group life insurance plan. Purchase business-owned buy-agreement with Terrence. 3. Purchase key person life insurance on Terrence. 4. Purchase criss-cross insurance with Terrence. ΟΟΟΟ Five years ago, Noelle purchased a $100,000, 20-year term insurance policy. Her policy lapsed two months ago when she stopped making her premium payments. She calls Anny, her insurance agent, to ask if she can reactivate her policy. What should Anny answer her? Select one correct answer from the list 1 Noelle can reinstate her policy because she has made the request within three years of the policy lapsing. 2 Noelle will have to pay the missed premiums and accrued interest. Noelle can reinstate her policy without showing proof of insurability. Noelle will have to apply for a new policy and show proof of insurability. 3. 4. ΟΟΟΟ
Konrad is the owner of CrossBoy, a manufacturing company employing over 50 employees. Konrad recently took out a $500,000 loan to expand his business. Terrence works as a sales manager and is responsible for roughly 40% of the company's revenue. Konrad recognizes the importance of Terrence's contributions to the success of the company. Therefore, in addition to a sizeable base salary, CrossBoy also pays Terrance regular performance-based bonuses. Konrad understands that if Terrence dies prematurely, CrossBoy would suffer financially. What should he do to protect his company? Select one correct answer from the list 1. 2. Offer Terrence group life insurance plan. Purchase business-owned buy-agreement with Terrence. 3. Purchase key person life insurance on Terrence. 4. Purchase criss-cross insurance with Terrence. ΟΟΟΟ Five years ago, Noelle purchased a $100,000, 20-year term insurance policy. Her policy lapsed two months ago when she stopped making her premium payments. She calls Anny, her insurance agent, to ask if she can reactivate her policy. What should Anny answer her? Select one correct answer from the list 1 Noelle can reinstate her policy because she has made the request within three years of the policy lapsing. 2 Noelle will have to pay the missed premiums and accrued interest. Noelle can reinstate her policy without showing proof of insurability. Noelle will have to apply for a new policy and show proof of insurability. 3. 4. ΟΟΟΟ
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
2
Transcribed Image Text:Konrad is the owner of CrossBoy, a manufacturing company employing over 50 employees. Konrad
recently took out a $500,000 loan to expand his business. Terrence works as a sales manager and is
responsible for roughly 40% of the company's revenue. Konrad recognizes the importance of Terrence's
contributions to the success of the company. Therefore, in addition to a sizeable base salary, CrossBoy
also pays Terrance regular performance-based bonuses.
Konrad understands that if Terrence dies prematurely, CrossBoy would suffer financially. What should
he do to protect his company?
Select one correct answer from the list
1.
2.
Offer Terrence group life insurance plan.
Purchase business-owned buy-agreement with Terrence.
3. Purchase key person life insurance on Terrence.
4. Purchase criss-cross insurance with Terrence.
ΟΟΟΟ
Transcribed Image Text:Five years ago, Noelle purchased a $100,000, 20-year term insurance policy. Her policy lapsed two
months ago when she stopped making her premium payments. She calls Anny, her insurance agent, to
ask if she can reactivate her policy.
What should Anny answer her?
Select one correct answer from the list
1 Noelle can reinstate her policy because she has made the request within three years of the policy lapsing.
2 Noelle will have to pay the missed premiums and accrued interest.
Noelle can reinstate her policy without showing proof of insurability.
Noelle will have to apply for a new policy and show proof of insurability.
3.
4.
ΟΟΟΟ
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