Question ID: 1075070 Labs, Inc. is owned by 3 friends who agree that the corporation should buy disability buy-sell policies on each of their lives. If a shareholder ever becomes disabled, the company will use the proceeds to purchase the disabled owner's share of the business. Which type of disability buy-sell agreement has Labs Inc. created? OA) Corporate buyout agreement OB) Entity-buyout agreement OC) Team-purchase agreement OD) Stock redemption agreement
Question ID: 1075070 Labs, Inc. is owned by 3 friends who agree that the corporation should buy disability buy-sell policies on each of their lives. If a shareholder ever becomes disabled, the company will use the proceeds to purchase the disabled owner's share of the business. Which type of disability buy-sell agreement has Labs Inc. created? OA) Corporate buyout agreement OB) Entity-buyout agreement OC) Team-purchase agreement OD) Stock redemption agreement
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:Question ID: 1075070
Labs, Inc. is owned by 3 friends who agree that the corporation should buy disability buy-sell policies on each of their lives. If a shareholder ever becomes
disabled, the company will use the proceeds to purchase the disabled owner's share of the business. Which type of disability buy-sell agreement has Labs
Inc. created?
OA) Corporate buyout agreement
OB) Entity-buyout agreement
OC) Team-purchase agreement
OD) Stock redemption agreement
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