Insurance agent Ricardo is recommending that Rob and Samuel, the owners of a manufacturing firm, put in place a properly funded 'buy sell' agreement. Should one owner die, it protects the surviving business owner, the business itself, the surviving family or other beneficiaries of the deceased owner. How can a properly funded 'buy sell' agreement ensure that the business is protected? Select one: a. It can provide funding through life insurance or other sources, it provides a mandatory sale to the surviving owner, it does not provide guaranteed value as the value of the business will change over time. b. It can provide a guaranteed buyer for the business, it can provide guaranteed value, it saves time, it provides an orderly transition of the business to the new owner. C. It provides a non-mandatory sale, it provides guaranteed funding through life insurance, it does not provide a guaranteed buyer for the business, it helps in the easy valuation of the business. d. It can provide guaranteed funding through life insurance, it provides a mandatory sale to the surviving owner, it provides guaranteed value and it provides a guaranteed buyer for the business.
Insurance agent Ricardo is recommending that Rob and Samuel, the owners of a manufacturing firm, put in place a properly funded 'buy sell' agreement. Should one owner die, it protects the surviving business owner, the business itself, the surviving family or other beneficiaries of the deceased owner. How can a properly funded 'buy sell' agreement ensure that the business is protected? Select one: a. It can provide funding through life insurance or other sources, it provides a mandatory sale to the surviving owner, it does not provide guaranteed value as the value of the business will change over time. b. It can provide a guaranteed buyer for the business, it can provide guaranteed value, it saves time, it provides an orderly transition of the business to the new owner. C. It provides a non-mandatory sale, it provides guaranteed funding through life insurance, it does not provide a guaranteed buyer for the business, it helps in the easy valuation of the business. d. It can provide guaranteed funding through life insurance, it provides a mandatory sale to the surviving owner, it provides guaranteed value and it provides a guaranteed buyer for the business.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Transcribed Image Text:Insurance agent Ricardo is recommending that Rob and Samuel, the owners of a manufacturing firm, put in
place a properly funded 'buy sell' agreement. Should one owner die, it protects the surviving business
owner, the business itself, the surviving family or other beneficiaries of the deceased owner.
How can a properly funded 'buy sell' agreement ensure that the business is protected?
Select one:
a.
It can provide funding through life insurance or other sources, it provides a mandatory sale to the
surviving owner, it does not provide guaranteed value as the value of the business will change over
time.
b.
It can provide a guaranteed buyer for the business, it can provide guaranteed value, it saves time, it
provides an orderly transition of the business to the new owner.
C.
It provides a non-mandatory sale, it provides guaranteed funding through life insurance, it does not
provide a guaranteed buyer for the business, it helps in the easy valuation of the business.
d.
It can provide guaranteed funding through life insurance, it provides a mandatory sale to the surviving
owner, it provides guaranteed value and it provides a guaranteed buyer for the business.
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