In general, the use of life insurance can fulfill all of the following basic needs EXCEPT:
A. Minimum interest rate based on U.S. Treasury rates
B. Payment of estate taxes
C. Liquidation of the stock of a disabled stockholder, either by the corporation or by other stockholder
D. Provision for continuity of the business after loss of a key person
Answer:A
In general, the use of life insurance can fulfill all of the following basic needs EXCEPT:
A. Minimum interest rate based on U.S. Treasury rates B. Payment of estate taxes C. Liquidation of the stock of a disabled stockholder, either by the corporation or by other stockholder D. Provision for continuity of the business after loss of a key person