company z has a cross purchase buy-sell agreement in place among its three founding partners. if the agreement is funded with individual life insurance, what would it require?

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Answer 1

Since, Company Z has a cross purchase buy-sell agreement, and it is funded with individual life insurance then Each partner must own a policy on the other partners.

Using a cross-purchase agreement, a company's stakeholders or other owners can procure the preferences or securities of a partner who eventually died, has become disabled, or resigned. In order to ease that transfer of value, the method frequently varies depending on a policy of life insurance in the occasion of a death.

A cross-purchase agreement is generally used during business continuity plans to clarify how share capital can be dispersed or obtained by the remaining survivor's partners, such as a fractional distribution based on each partner's shareholding portion of the company.

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Related Questions

if a check correctly written and paid by the bank for $442 is incorrectly recorded in the company's books for $380, how should this error be treated on the bank reconciliation?

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If a check correctly written and paid by the bank for $442 is incorrectly recorded in the company's books for $380, this error should be treated on the bank reconciliation as Subtract $64 from the book balance.

An entity's bank account and its financial records are compared in a bank reconciliation statement, which is a summary of banking and business activity. In the statement, the deposits, withdrawals, and other transactions affecting a particular time period are listed. A financial internal control instrument that can be used to prevent fraud is a bank reconciliation statement.

Statements of bank reconciliation confirm the processing of payments and the deposit of cash receipts into the bank. In order to make the necessary adjustments or corrections, the reconciliation statement aids in locating discrepancies between the bank balance and the book balance. Reconciliation statements are normally processed once a month by an accountant.

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given that starbucks sells 1.33 percent of its total u.s. coffee bean sales in denver and the population there is 1.57 percent of the total u.s. population, calculate the bdi for starbucks coffee beans sales in denver.

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The brand development Index (BDI) of Starbucks coffee beans sales in Denver, will be 84.71% given that sales and market population.

Given,

Market brand sale = 1.33%

Market population = 1.57%

BDI = Market brand sales/ market population *100

      = 1.33 /1.57*100

      = 84.71%

A brand development index (BDI) is a ratio that measures a brand's performance in a particular consumer group. It signifies the connection between a firm's total sales and the demography of a specific market, aiding brands in enhancing their marketing and promotional methodologies.

The index assists marketers in recognizing positive and negative sections for particular brand (usually segment of the population or demographical).

The BDI is especially beneficial when used with the categorization development indicators (CDI). It has the potential to ascertain the media allocations to which a specific brand is publicized. It can also be employed to ascertain how much advertising or publicity must be put into a given market.

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What determines whether your debt is positive or negative?
a flip of a coin
a determination by your banker
the age of the debt
the amount of your gross income dedicated to paying it down

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The age of the debt would be what determined wether your debt would be positive or negative
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