NACVA Exam CVA Topic 6 Question 26 Discussion

Actual exam question for NACVA's CVA exam

Question #: 26
Topic #: 6

Life insurance can serve as an important source of funding for stock purchase agreements pertaining to decreased shareholders. The advantages of using life insurance for the purpose are several. Which of the following is NOT out of such advantage?

ADeceased shareholders' estates

BThe corporation's investment in the cash value of an ordinary life policy is a business asset.

CAny excess insurance the corporation carries over and above the value of the stock purchase agreement can be retained as earned surplus

DProvision for continuity of the business after loss of a key person

Show Suggested Answer

Suggested Answer: D

by Krissy at May 05, 2022, 01:34 AM

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