1. Which one of the following is a contingent investment?
A) Recurring deposit B) Bonds C) Equity shares D) Life insurance policy
Answers
Answer:
D) Life insurance policy
Explanation:
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Answer:
Contingent investment is D) Life insurance policy.
Explanation:
Contingent investment:
Making one investment requires making one or more other investments; contingent investments are dependent initiatives.
Making one investment requires making one or more other investments; contingent investments are dependent initiatives. For instance, if a business decides to construct a factory in a rural, underdeveloped area, it may need to invest in homes, roads, hospitals, etc. Building a plant also demands investment in employee facilities for firms to recruit labour. The entire amount will be viewed as a single investment.
Contingent:
A group of individuals who act as an organization's, nation's, or military force's representatives:
- At this year's conference, the French delegation was unmistakably present.
- a sizable number of voluntarily deployed soldiers
Life insurance policy:
An insurance company and a policyholder enter into a contract known as a life insurance policy. In a life insurance policy, the insurance company guarantees to pay a specified amount of money to the policyholder's heirs and beneficiaries in the event of the policyholder's passing during a specific time frame.
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