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Two partners own equal shares in a business worth a total of $ 1, 00 . If they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, which of the following is TRUE ?

User Sepisoad
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Final answer:

If two partners own equal shares in a business worth $100 and commit to a life insurance policy, the policy will provide a means for the surviving partner to buy out the deceased partner's share in the event of death.

Step-by-step explanation:

If two partners own equal shares in a business worth a total of $100, and they both commit to the purchase of a life insurance policy that will fund a Buy-Sell Agreement, the following statement is true:

The life insurance policy will provide a means for the surviving partner to buy out the deceased partner's share of the business. This ensures that the business can continue operating smoothly even in the event of one partner's death.

User Gopelkujo
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