Question

Aahi worries about what will happen to her jewelry business if her business partner were to have to leave the business permanently due to injury or illness. Her partner Pahi feels the same. Each would like to be able to purchase the other's stock in such a case. They should consider taking out what kind of insurance? a. A business owner's policy b. Key person life insurance c. Disability buyout insurance d. Workers compensation

Answer 1

Answer:

The correct answer is C

Explanation:

Disability buyout insurance is the term which is defined or designed in order to provide the funds that is important to buy an owner or the interest of the partner in the small business if the person become disabled.

It will help or allow the remaining owners to continue the operations by replacing a key person in terms of financially as the disability of the person prevents them from returning to the business.