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NACVA CVA Exam - Topic 4 Question 25 Discussion

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

NACVA CVA Exam - Topic 4 Question 25 Discussion

Actual exam question for NACVA's CVA exam
Question #: 25
Topic #: 4
[All CVA Questions]

In general, the use of life insurance can fulfill all of the following basic needs EXCEPT:

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Suggested Answer: C

by Jutta at May 07, 2022, 08:59 AM

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Lashandra
7 months ago
Definitely not for liquidation of stock, that's for sure.
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Selma
8 months ago
I thought life insurance could cover estate taxes, but maybe not?
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Raul
8 months ago
Wait, are we sure about that? Seems a bit off.
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Vilma
8 months ago
Totally agree, C is the odd one out here!
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Agustin
8 months ago
Life insurance can't guarantee minimum interest rates.
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Tarra
8 months ago
I'm a bit confused about A and D. I know life insurance can help with key person loss, but I'm not sure if it covers stockholder liquidation.
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Samira
8 months ago
I feel like we practiced a question similar to this, and it was about business continuity. So, I think D is definitely a valid use of life insurance.
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Kaitlyn
8 months ago
I think option C stands out because life insurance typically doesn't deal with interest rates like U.S. Treasury rates.
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Britt
8 months ago
I remember discussing how life insurance can help with estate taxes and business continuity, but I'm not sure about the minimum interest rate part.
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Noemi
8 months ago
I'm a little confused here. The question seems to be asking about the most important questions to ask the customer, but some of the options don't seem directly related to the stated concerns. I'd probably go with the network connectivity and off-peak hours questions.
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Annalee
9 months ago
This seems like a straightforward risk response question. Management is clearly asking Harry to implement a mitigation strategy by finding a new supplier who can fulfill the window order on time.
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Fidelia
9 months ago
This looks like a classic optimization problem. I'll need to carefully analyze the graph and think through the key factors to determine the most efficient level of output.
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