Companies take savings as premium, invest in bonds and make payments to beneficiaries are classified as_____________?
Correct answer: B. Life insurance companies
- A. Debit unions
- B. Life insurance companies
- C. Credit unions
- D. Auto purchases
Explanation
Life insurance companies collect premiums, invest those funds in securities such as bonds, and pay beneficiaries when insured events occur. Credit unions and debit unions do not primarily provide beneficiary payments under life policies.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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