Question

All of the following business arrangements can use "insured buy-sell agreements" to assure the orderly continuation of a business EXCEPT?

A) sole proprietorships.
B) close corporations.
C) partnership forms of business.
D) government entities.

Answer 1

Government entities cannot use insured buy-sell agreements, which are meant for sole proprietorships, partnerships, and close corporations, to ensure business continuity.

Step-by-step explanation:

All of the following business arrangements can use "insured buy-sell agreements" to assure the orderly continuation of a business EXCEPT government entities. An insured buy-sell agreement is an arrangement used by sole proprietorships, partnerships, and close corporations to facilitate a smooth transition of ownership in the event of death, disability, or retirement of an owner. However, this type of agreement is not applicable to government entities as they are not owned by individuals or shareholders in the same manner as private businesses and typically have their own mechanisms for continuity and transition.