Maitland and Francine jointly own a thriving food services company. They have decided that it would be wise to agree on a buy-sell agreement and are reviewing funding options. Which of the following describes one of the advantages of business owned-insurance?

a)Each owner shares proportionally in the cost of insurance depending on the age and health of each owner.

b)Premiums are paid with before tax dollars which makes purchase by the corporation more tax efficient.

c)If there are more than two associates, it will be more efficient and cost effective for the business to own the policies.

d)If there are only two shareholders, the buy-sell agreement will be funded by the owners and will not affect the financial statements.