Answer:
C)Direct marketing is the correct answer.
Explanation:
The promotional method in which the information of company, product or survive is promoted directly to the customer without the use of advertising middleman is called direct marketing. In this method potential interest is presented to a consumer that is a likely buyer. Various of direct marketing are catalogues, fliers, Newsletters, phone calls etc. Although some marketing techniques aim to educate about company's products but the direct marketing aims to persuade people to take action, getting the sale is the ultimate goal.
Dallas Company uses a job order costing system. The company's executives estimated that direct labor would be $3,360,000 (240,000 hours at $14/hour) and that factory overhead would be $1,540,000 for the current period. At the end of the period, the records show that there had been 220,000 hours of direct labor and $1,240,000 of actual overhead costs. Using direct labor hours as a base, what was the predetermined overhead rate? (Round your answer to two decimal places.)
A) $5.17 per direct labor hour.
B) $7.00 per direct labor hour.
C) $6.42 per direct labor hour.
D) $5.84 per direct labor hour.
E) $6.25 per direct labor hour.
Answer:
Option (C) is correct.
Explanation:
Given that,
Estimated overhead cost = $1,540,000
Estimated direct labors (in dollars) = $3,360,000
Estimated direct labor hours = 240,000
Actual overhead cost = $1,240,000
Predetermined overhead rate:
= Estimated overhead cost ÷ Estimated direct labor hours
= $1,540,000 ÷ 240,000
= $6.42 per direct labor hour
Irene Rosenfeld, the CEO of Kraft, compares the sales figures for Oreos in China against the sales figures for Oreos in the United States, and she concludes that the original Oreo cookie may not work in China.
Answer:
The correct answer is Compare performance and standards.
Explanation:
Control is a cyclical and repetitive process. It is composed of four elements that follow one another:
Setting standards: It is the first stage of control, which sets the standards or criteria for evaluation or comparison. A standard is a standard or criterion that serves as the basis for the evaluation or comparison of something. There are four types of standards; which are presented below:
Quantity standards: As production volume, quantity of stocks, quantity of raw materials, number of hours, among others.
Quality standards: As control of raw material received, production quality control, product specifications, among others.
Time standards: As standard time to produce a certain product, average time of stocks of a particular product, among others.
Cost standards: As production costs, administration costs, sales costs, among others.
Performance evaluation: It is the second stage of control, which aims to evaluate what is being done.
Comparison of performance with the established standard: It is the third stage of the control, which compares the performance with what was established as a standard, to verify if there is deviation or variation, that is, an error or failure in relation to the expected performance.
Corrective action: It is the fourth and last stage of the control that seeks to correct the performance to adapt it to the expected standard. Corrective action is always a measure of correction and adequacy of any deviation or variation in relation to the expected standard.
Which of the following statements is (are) true of a monopoly?
(i) A monopoly has the ability to set the price of its product at whatever level it desires.
(ii) A monopoly's total revenue will always increase when it increases the price of its product.
(iii) A monopoly can earn unlimited profits.
Answer:
Option (A) is correct.
Explanation:
In a monopoly market condition, there is only one firm in the market and the price of goods and services are set by this firm only. There are large number of barriers or restrictions on the entry of the firms. The firm in a monopoly market conditions is a price maker. The prices of goods and services are generally higher in this market condition. For example, natural gas company, Microsoft and windows, etc.
Marina is on vacation in Jamaica and buys a bottle of rum for about half the price she would pay for the same bottle at home. The rum is not on sale in Jamaica but is priced lower because that's the price the market will bear. What is this an example of_________
Answer:
The competitive advantage of the countries producing goods and services
Explanation:
The countries have advantage when they produce some goods, some countries try to specialize in the produccion certain goods, because they have climate, or ather advantage. There is also some taxes that increases the price of the imported goods, because they are cheaper than the same product that is produced locally, and the goverment protect with the tax the local producers that have a higher cost and do not have advantages, that is why the price is higher in Marina´s country.
Final answer:
This is an example of market pricing based on demand and supply. The lower price of the rum in Jamaica compared to Marina's home reflects the market setting a price that buyers are willing to pay.
Explanation:
This is an example of market pricing based on demand and supply. Market prices are determined by the interaction between buyers and sellers in a market. In this case, the price of rum in Jamaica is lower because it is the price that the market will bear, meaning that it is the price that buyers are willing to pay.
Market prices can vary based on factors such as supply and demand, competition, production costs, and consumer preferences. When the market price of a product is lower than what it would cost in another location, it can provide economic benefits for buyers in that location.
For example, if Marina were to buy the same bottle of rum at home, she would have to pay a higher price due to factors like taxes, import costs, and other expenses. However, in Jamaica, where rum is produced and readily available, the price is lower.
On January 1, 2016, Yi Corporation received cash from issuing 10-year $100,000 bonds at face value. The interest of $5,000 is paid annually to the bondholders on December 31. How do the issuance of the bonds and the payment of the interest affect Yi's financing activities section of the statement of cash flows for 2016?
Answer: The issuance of the bonds affect the financing activities of the cash flow section positively as 100,000 cash is coming in by issuing the bond so this is a positive cash flow due to financing activities.
However the interest payment will not affect the financing activities section of the cash flow because interest payments are part of the operating cash flows according to U.S GAAP interest paid is an operating activity in the cash flow.
Explanation:
Afecreen Inc. has an average of 85 working days in a quarter. The company conducts quality checks to assess the performance of its employees. The employees who perform well may receive a bonus after 70 days or 100 days, but the average interval between the completion of tasks and the receiving of bonus is 85 days. In the context of reinforcement theory of motivation, which of the following intermittent reinforcement schedules does this scenario best illustrate?
a. A fixed interval reinforcement schedule
b. A fixed ratio reinforcement schedule
c. A variable interval reinforcement schedule
d. A variable ratio reinforcement schedule
Answer:
C) A variable interval reinforcement schedule
Explanation:
A variable interval reinforcement schedule is the opposite of a fixed interval reinforcement schedule. If a variable interval schedule is used, the time that passes between response and the reward used as reinforcement is not fixed, it is generally unpredictable and changing.
In this case, the time intervals for handing out bonuses are set at 70 days and 100 days, but they usually happen around day 85, a few days more or less.
In an open market purchase, the Fed ________ government securities, which ________ bank reserves and ________ the federal funds rate.
Answer:
The correct answer is: buys; increases; decreases.
Explanation:
Open market operations refer to the sale and purchase of government securities in the open market. It is a monetary tool used by the central bank to control the money supply.
In an open market purchase, the Fed buys government securities in the open market and pays for these securities. This causes the reserves with commercial banks to increase.
As the banks now have more money to lend or the lending capacity of the bank increases, this causes the interest rates to decline. The federal funds rate is also an interest rate, so it will decline as well.
Answer:
Buys, Increase, Increase
Explanation:
The sale and purchase of government securities in the open market by federal reserve is called open market operation, it is a flexible and frequently used way means of implementing the monetary policy. FOMC(Federal Open Market Committee) handles all the open market operations and it consists of five Federal reserve district bank presidents and seven Federal reserve governors. OMO ensures that the money flows freely into the hands of the businesses and consumers. To increase the money supply the Fed purchases the bond form the banks to inject money in the banking system. Banks uses these funds for providing loans, and the increased loan activities reduces the interest rate.
Health Wise Corporation has developed a new diet supplement to assist with weight loss. Which type of legal protection grants HealthWise Corporation exclusive rights for a defined period to the manufacture, use, or sale of this new diet supplement?
A) Trademark
B) Copyright
C) Patent
D) Warranty
E) Treaty
Answer:B) Copyright
Explanation:
A copyright is a legal protection that gives the original inventors of a product the exclusive right to manufacture, sell ,use a product for a limited time.
A copyright prevents others from duplicating a product during the years the copyright is active.
A trademark is a logo of a brand , product or company.
Patent is a legal right given to an inventor that prevents others from using ,duplicating or selling the invention for a period of time usually twenty years.
A warranty is an agreement between a buyer and a seller where the seller agrees to replace or make repairs when certain damages occur to a product within a specified period.
Treaty is a written agreement agreed to by countries and international organisations.
All else constant, if butter and margarine are substitute goods, then as the price of butter rises,
a. the demand for margarine will fall
b. the quantity of butter demanded will fall
c. the demand for butter will fall
d. the demand for butter will rise
e. butter and margarine will become complementary goods, provided that butter is a normal good
According to the law of one price
A. if transaction costs are zero, identical goods should sell for the same price everywhere.
B. if transactions costs are zero, all firms must earn the same profit margin.
C. there must be no differences in the cost of producing identical goods by different producers.
D. if transactions costs are zero, firms must sell a product at a price equal to its marginal cost.
Answer: Option A
Explanation: In simple words, law of one price refers to the theory which states that, when the market is free and there is flexibility present in transactions then two identical products should sell for same amount in two markets using the same currency.
As per the law of one price, the brokers and dealers do not have any scope of arbitrage resulting in no further scope of earning abnormal profits. Hence from the above we can conclude that the correct option is A
Marburg Co. expects direct materials cost of $5 per unit for 100,000 units (a total of $500,000 of direct materials costs). Marburg's standard direct materials cost and budgeted direct materials cost is:
$5 per unit (Standard); $500,000 per year (Budgeted)
$5 per unit (Standard); $5 per unit (Budgeted)
$500,000 per year (Standard); $5 per unit (Budgeted)
$500,000 per year (Standard); $500,000 per year (Budgeted)
Answer:
$5 per unit (Standard); $500,000 per year (Budgeted)
Explanation:
Standard = $5 per unit
Budgeted = $5*100,000
= $500,000
issues $40,000,000, 6%, 5-year bonds dated January 1, 2015. The bonds pay interest semiannually on June 30 and December 31. The bonds are issued to yield 5%. What are the proceeds from the bond issue?
Answer:
$41,750,412.79
Explanation:
To determine the proceeds from the bond issue we must determine the present value of the bonds and we can do that using an excel spreadsheet and the present value formula =PV(Rate,Nper,PMT,FV)
where:
Nper = 5 x 2 = 10 (5 year bonds issued)Rate = 5% / 2 = 2.5% (semiannual payments)PMT = ($40,000,000 x 6%) / 2 = $1,200,000 FV = $40,000,000 (face value of bonds)PV = ?=PV(Rate,Nper,PMT,FV) =PV(2.5%,10,1200000,40000000) = $41,750,412.79
Downward Dog Wines had to market its products with a different name in a foreign market as it was mandatory to translate the name into the local language. Which factor has most likely influenced the compulsory change of Downward Dog’s product name in the foreign market in this scenario
Answer:
Legal requirement
Explanation:
When a firm or an organisation tries to enter an international or foreign market, there are few regulations which are compulsory to follow. Legal requirements are usually enforced by the local government to ensure transparency and the rule of law. It is mandatory to change a company's name into the local language before marketing. It is a legal requirement that is mandatory to follow.
The need to respect and adapt to the local culture's norms and values is the most likely reason for the mandatory translation of Downward Dog Wines' product name in the foreign market."
Cultural sensitivity is a crucial aspect of international marketing. The name ""Downward Dog"" may have specific connotations or meanings in the local culture that could be inappropriate or offensive. For instance, if ""Downward Dog"" is a term related to a yoga pose in English-speaking countries, it might not have the same meaning or could be misunderstood in a different cultural context.
To avoid potential cultural insensitivity or misinterpretation, companies often choose to translate or adapt their brand names to better align with the local market's cultural norms and values. This ensures that the product is well-received by consumers and that the brand does not inadvertently offend potential customers.
Other factors such as legal requirements, consumer behavior, and linguistic differences could also influence the need for a name change. However, in this scenario, cultural sensitivity is the most likely factor, as it directly pertains to the appropriateness of the brand name within the local cultural context. Legal requirements typically involve trademark laws or regulations specific to product labeling, which may not necessarily dictate a translation. Consumer behavior and linguistic differences might influence the marketability of the product, but they do not necessitate a compulsory change as cultural sensitivity does.
Naomi tells her sales representatives the goal is to generate at least a 20 percent return on investment for all of the industrial building supplies they sell. Naomi is using a ________ pricing strategy.
Answer:
Margin
Explanation:
When you use an indicator like a return over something else (in this case over the investment) the demand is around having a margin over a quantity, so the indicator in this case could be operational margin or net margin but all of the over the sales.
Answer:
The answer is: Target return pricing strategy
Explanation:
Target return pricing is the process of setting prices based on an estimate of a competitive market price. Thereafter, a firm's required return or target profit margin is added to the price to determine a final selling price. Based on this final price, the cost of production is estimated so as to determine the cost constraint per manufactured item or unit of service provided. Naomi has determined that the return on investment is 20% . This margin would be added to the price to arrive at a final selling price for the industrial building supplies after which cost constraints would be set.
Although holding a territory can prove costly in terms of the energetic outlay necessary to defend or advertise the territory, territory ownership imparts benefits that offset those costs. The primary benefit of territory ownership is
Answer:
The primary benefit of territory ownership is "exclusive access to the resources within the territory"
Explanation:
A territory is an area, containing certain resources that is controlled by an individual or a country.
Although it may prove costly to defend a territory from intruders, whoever owns or is in control of the territory has priority over, and unlimited access to, the resources within that territory and can utilize them as he/she chooses.
A multinational corporation uses which international strategy for entering a foreign market by simply shipping goods produced in the company's home country to other countries for marketing to minimize risk and to experiment with a specific product?
Answer:
Exporting
Explanation:
The multinational corporation is using exporting because it is a strategy for entering a international market in which the company's products are sent to a foreign country. This is the most popular strategy that organizations use to go into a foreign market because it allows to reduce the risk of having an operation overseas and to learn before investing in an international market.
Suppose that a pharmaceutical company wants to grow in size but is constrained in the short run by its production capacity. What are some of the steps the company can take in the long run to overcome these constraints? Instructions: You may select more than one answer. A. Use cheaper materials B. Hire additional workers C. Build more factories. D. Expand the size of current factories.
Answer:
Build more factories, Expand the size of current factories, Use cheaper materials
Explanation:
Long run is not a precise period of time thereby meaning it could span from a year to eternity, which is adequate time to plan and grow. Building more factories will increase the growth in size for the capacity for more production as well as expanding the size of the current factories. Due to the fact that there is a constraint of production capacity the company should look for alternatives in production technology in the long run so as to reduce cost of materials but with the same production quality.
Answer: option b & d
Explanation:
Both of the options are dependent on size of demand for product.
After research is done to determine proposed size, using the rate of production to determine whether hiring additional workers with more shifts in the factory to increase production capacity to meet aim of growing in size .
Or expansion of facility to make room for new equipment to increase production capacity.
Ernie wants Harry's car for a weekend. To persuade Harry to let him take the car, Ernie prepares to offer to clean Harry's apartment for three weeks. If he still disagrees, Ernie plans to offer him $35. If this does not work, then Ernie decides he would let Harry stay in his apartment for two weeks. Ernie is engaging in:
A. flexible implementation.
B. agenda determination.
C. adjustable implementation.
D. triple bypass preparation.
E. adaptive planning
Answer:
E.
Explanation:
Based on the information provided within the question it seems that Ernie is engaging in adaptive planning. This term refers to when an individual uses preconceived notions or memories in order to adapt his planning decisions to meet future predicted scenarios. Which seems to be what Ernie is doing by preparing various contingency plans in case his first offering is rejected.
The correct option is E. If this does not work, then Ernie decides he would let Harry stay in his apartment for two weeks. Ernie is engaging in adaptive planning.
Ernie is preparing a series of offers to persuade Harry to let him take the car. He starts with one offer and has subsequent offers ready if the initial ones are not accepted. This approach shows flexibility and adaptability in his planning, as he is ready to change his strategy based on Harry's responses.
Let's analyze the options:
A. Flexible implementation: This term suggests a degree of adaptability in how a plan is executed, but it does not fully capture the sequential and conditional nature of Ernie's offers.
B. Agenda determination: This refers to setting the topics or issues to be discussed or addressed, which is not what Ernie is doing. He is not determining what will be negotiated but rather how he will negotiate.
C. Adjustable implementation: Similar to flexible implementation, this term implies that there is room for modification in the execution of a plan, but it does not convey the strategic and sequential approach Ernie is taking.
D. Triple bypass preparation: This is a medical term referring to a type of heart surgery and is not related to negotiation or planning strategies.
E. Adaptive planning: This term best describes Ernie's approach. He is planning to adapt his offers based on Harry's acceptance or rejection of each. He has a primary plan (cleaning the apartment for three weeks), a secondary plan ($35), and a tertiary plan (letting Harry stay in his apartment for two weeks). This sequence of contingent offers shows a clear strategy of adaptive planning.
Your financial institution can’t help you if there is a mistake on your bank account statement ?
True or false
Answer:
True, they can and will help you
Explanation:
It is possible that my financial institution can help me if there is a mistake on my bank account statement .
What is bank statement?A bank statement serves as a statement that provides all transactions for a bank account in a particular time.
Therefore, if there is any problem with my bank statement, my financial institution will help to resolve it.
Learn more about bank statement at;
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The leadership styles of ________ originally included supportive and achievement-oriented and two others, but was more recently revised to include a total of eight styles. Multiple Choice House’s path-goal model
1) Greenleaf's servant leadership model
2) House's path-goal model
3) leader-member exchange model
4) Fiedler's contingency model
5) LMX model of leadership
Answer:
2) House's path-goal model
Explanation:
Based on the information provided within the question it can be said that the he leadership styles of House's path-goal model. This model is based on choosing a style that most perfectly fits the employee and work environment in order to be able achieve the goal. This is done in order to improve employee satisfaction which would cause them to become more productive and efficient members within the organization.
A jury must decide whether a defendant, already judged should receive the death penalty. They are told that the defendant committed the crime after years of physical abuse, a fact that could argue for a sentence less than death. This is an example of a(n)_____ factor.
a.discretionary
b.disparity
c.aggravating
d.mitigating
Answer:
d.mitigating
Explanation:
This is a mitigating factor. A mitigating factor is a fact of relevance as it can reveal the motivations of the crime. Although not sufficient to absorb the defendant, except in cases of self-defense, when there is evidence of mitigating factors, this can be used to soften a defendant's penalty if it is proven that the motive for the crime was not misleading. A good example is the case in which the defendant committed a murder, and he was sentenced to death, but there is a mitigating factor: the defendant suffered physical abuse for years and killed his attacker. The jury can understand that the defendant committed the crime due to the suffering caused by the victim, which would be different from a crime motivated by trite motives. Thus, the death penalty can be understood as disproportionate and it can be reversed to a less severe penalty.
Suppose a fall in consumer income drives down the demand for lobster while a record harvest increases supply. How would these changes affect the equilibrium price and quantity of lobsters? Group of answer choices
Answer:
A decrease in price and unambiguous change in quantity.
Explanation:
A decrease in consumer income causes the demand for lobster to decrease. This decrease in demand will cause the demand curve to move to the left.
A record harvest will cause the supply of lobster to increase. This increase in supply will cause the supply curve to move to the right.
These movements in the supply and demand curve will cause the price level to decline.
The change in the equilibrium quantity depends upon the proportionate change in demand and supply. If both demand and supply change by the same proportion, the quantity will remain the same.
If the decline in demand is more than the increase in supply, the quantity will fall.
If the increase in supply is more than the decline in demand, the quantity will rise.
In the early 14th century, the agricultural economy in Europe had begun to:
a. fail due to papal restrictions on monastic houses.
b. fail due to climate change and excessive cultivation.
c. regain levels achieved in the late Roman Empire.
d. improve due to rising average temperatures."
Answer:
B) fail due to climate change and excessive cultivation.
Explanation:
Many problems that modern civilization is currently facing where also a problem hundreds of years ago. An example of this is that excessive agriculture during the middle ages in Europe lead to the reduction of forests (which lowered rain levels) and the wear out of soil which eventually ended up reducing the amount of crops and hurting local economies. That lead to an increase in the amount of poor farmers that left the countryside and moved into larger cities.
Samantha goes to the grocery store to make her monthly purchase of ginger ale. As she enters the soft drink section, she notices that the price of ginger ale has been increased 15 percent, so she decides to buy some peppermint tea instead. Which of the following problems in the construction of the CPI is this situation most relevant to?a) substitution bias.b) introduction of new goods.c) unmeasured quality change.d) income effect.
Answer:
The correct answer is A that is substitution bias
Explanation:
Substitution bias is the bias in the economic index numbers, if that do not incorporate the data on the consumer expenditures then the customer will switch from relatively more expensive products or items to the cheaper ones due to the change in the price.
As, the price of that produce has increased so, the customer shifted or preferred to buy the product which is cheaper in price. Therefore, it is referred to as the Substitution bias.
According to the Chapter 9 lecture, where has Industrial Policy been successful?
A. Peru
B. South Korea
C. France
D. South Africa
Answer:
B) South Korea
Explanation:
Even without reading Chapter 9, it is easy to answer the question, South Korea is one of the most successful examples of government sponsored industrial policy. Before the Korean war both Koreas were extremely poor nations, among the poorest in the world. After the war the new government of South Korea sponsored an industrial policy which turned the country into a developed nation with a strong GDP per capita, widespread access to higher education and quality health care, high life expectancy and low infant mortality rate.
Suppose Van would like to invest $2,000 of his savings.
One way of investing is to purchase stock or bonds from a private company.
Suppose RoboTroid, a robotics firm, is selling bonds to raise money for a new lab—a practice known as _______ (Debt or equity) finance. Buying a bond issued by RoboTroid would give Van _________ (An IOU, a promise pay, from or a claim to partial ownership) the firm. In the event that RoboTroid runs into financial difficulty, _______________ (Van and other bondholders or the stockholders) will be paid first.
Assuming that everything else is equal, a U.S. government bond that matures 10 years from now most likely pays a __________ (higher or lower) interest rate than a U.S. government bond that matures 30 years from now.
Answer:
The anwers are equity, a claim to partial owernship, van and other bod holders , higher.
Explanation:
Suppose Van would like to invest $2,000 of his savings.
One way of investing is to purchase stock or bonds from a private company.
Suppose RoboTroid, a robotics firm, is selling bonds to raise money for a new lab—a practice known as ___equity____ (Debt or equity) finance. Buying a bond issued by RoboTroid would give Van _____a claim to partial ownership____ (An IOU, a promise pay, from or a claim to partial ownership) the firm. In the event that RoboTroid runs into financial difficulty, _van and other bondholders______________ (Van and other bondholders or the stockholders) will be paid first.
Assuming that everything else is equal, a U.S. government bond that matures 10 years from now most likely pays a ___higher_______ (higher or lower) interest rate than a U.S. government bond that matures 30 years from now.
Dina loves branded apparel and accessories but cannot afford to buy them too often. Fortunately, Dina lives close to an off-price retailing outlet that is owned and operated by a famous brand. The company utilizes this store to sell all its surplus, discontinued, or irregular goods at significantly lower costs. This outlet is an example of a ______
Answer: Off- Price Retail Store
Explanation: An off price retail store also known as treasure hunt is a store that sells at very low prices. They stock wide range of original goods from well known manufacturers and sell at reduced price.
It focuses more on fashion goods from well known designers. The items bought here are well known for quality.
The federal funds rate is the a. percentage of face value that the Federal Reserve is willing to pay for Treasury Securities. b. percentage of deposits that banks must hold as reserves. c. interest rate at which the Federal Reserve makes short-term loans to banks. d. interest rate at which banks lend reserves to each other overnight.
Answer:
d. interest rate at which banks lend reserves to each other overnight.
Explanation:
Federal fund rates are the rates at which the bank lend each other overnight in the market, as the reserves fall the federal fund rate fall and as the reserves increase the federal fund rate increases.
On July 1, 2021, an interest payment date, $153000 of Oriole Company bonds were converted into 3070 shares of Oriole Company common stock each having a par value of $45 and a market value of $54. There is a $5900 unamortized discount on the bonds. Using the book value method, Oriole would record:
Final answer:
Using the book value method, Oriole Company would record the conversion of $153,000 face value bonds at a book value of $147,100 into 3,070 shares of common stock with a $45 par value by debiting Bonds Payable and Discount on Bonds Payable and crediting Common Stock at Par Value and Additional Paid-in Capital.
Explanation:
When using the book value method to record the conversion of bonds to common stock, the carrying amount of the bonds, which includes any unamortized discount or premium, is used to determine the value of the stock issued. In Oriole Company’s case, the book value of the bonds is calculated by subtracting the unamortized discount from the face value of the bonds:
153,000 (Face Value) - 5,900 (Unamortized Discount) = 147,100 (Book Value)
This book value is then exchanged for 3,070 shares of common stock. Since the par value of the stock is given to be $45 per share, the entry would involve crediting the common stock account with the par value of the shares issued and the additional paid-in capital for any excess.
3070 shares × $45 par value = $138,150
The remaining balance goes to the additional paid-in capital:
147,100 (Book Value) - 138,150 (Common Stock at Par Value) = 8,950 (Additional Paid-in Capital)
The journal entry would look as follows:
Which life insurance settlement option guarantees payments for the lifetime of the recipient, but also specifies a guaranteed period, during which, if the original recipient dies, the payments will continue to a designated beneficiary?
Answer:
Life income with certain period annuity
Explanation:
This type of policy guarantees a certain amount of money during the remaining life of the insured. It also guarantees that during a minimum specified time, the certain period, the payments will be carried out even if the insured dies. In this case the benefits will be paid to his/her beneficiary. The insured determines the certain period when choosing the life insurance plan, and the certain period can vary from 5 to 30 years.