Question

Why is partnership insurance important?

a.

To ensure continuity of the partnership business after the death of a partner

b.

To provide financial support to the surviving partners in case of a dispute

c.

To protect the partnership against losses due to market fluctuations

d.

None of the above

Posted under IC22 Life Insurance Underwriting

Answer: (a).To ensure continuity of the partnership business after the death of a partner Explanation:Partnership insurance is important to ensure the continuity of the partnership business after the death of a partner. Without partnership insurance, the surviving partners may have to sell assets or close down the business to pay the deceased partner's share.

Interact with the Community - Share Your Thoughts

Uncertain About the Answer? Seek Clarification Here.

Understand the Explanation? Include it Here.

Q. Why is partnership insurance important?
Add Comment

Similar Questions

Explore Relevant Multiple Choice Questions (MCQs)

Q. How is the amount of cover determined in partnership insurance?

View solution

Q. What is anti-selection in partnership insurance?

View solution

Q. What happens to the proceeds of a partnership insurance policy?

View solution

Q. What is the purpose of employer-employee scheme?

View solution

Q. Who is the proposer in employer-employee scheme?

View solution

Q. Is there a maturity benefit for the employer in employer-employee scheme?

View solution

Q. What are the two approaches to implementing employer-employee scheme?

View solution

Q. How is the premium paid by the employer treated for tax purposes in employer-employee scheme?

View solution

Q. What is HUF?

View solution

Q. Who is the Karta in HUF?

View solution

Q. What is the role of Karta in HUF?

View solution

Q. Who are the coparceners in HUF?

View solution

Q. What is the status of daughters in HUF after marriage?

View solution

Q. Can the wife of the Karta become the Karta after his demise?

View solution

Q. Is an HUF eligible for tax deductions and exemptions?

View solution

Q. Can policies be financed from the HUF income for the benefits of only one member?

View solution

Q. Who will be the owner of a policy affected under HUF?

View solution

Q. Can an HUF earn income from investment of its funds?

View solution

Q. How is the insurance cover amount for an HUF policy calculated?

View solution

Q. What is the Married Women's Property (MWP) Act?

View solution
View All MCQs on IC22 Life Insurance Underwriting

Recommended Subjects

Are you eager to expand your knowledge beyond IC22 Life Insurance Underwriting? We've handpicked a range of related categories that you might find intriguing.

Click on the categories below to discover a wealth of MCQs and enrich your understanding of various subjects. Happy exploring!

Mechanical Engineering

Explore the world of Mechanical Engineering with our specialized category. Dive into...

Civil Engineering

Dive into the world of Civil Engineering with our specialized category. Explore the...

Electrical Measurement and Instrumentation

Unlock the world of electrical measurements with our dedicated category. Explore...

Microbiology

Uncover the fascinating world of microbes with our Microbiology category. Delve into...

Molecular Biology

Dive into the intricate world of molecular biology with our specialized category....

Environmental Engineering

Explore the critical field of Environmental Engineering with our dedicated category....

Chemistry

Unlock the mysteries of chemistry with our Chemistry category. Delve into the...

Basic Chemical Engineering

Get a solid foundation in Chemical Engineering with our Basic Chemical Engineering...

Drug and Pharmaceutical Biotechnology

Navigate the world of pharmaceuticals and biotechnology with our dedicated category....