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Ten years ago, when they were fresh out of college, Daniel and Matthew started an IT company. Although they are excellent friends, Daniel does not
Ten years ago, when they were fresh out of college, Daniel and Matthew started an IT company. Although they are excellent friends, Daniel does not get along with Matthew's w Eaine. Daniel is worried that, if something happened to Matthew, Elaine might want to take over his responsibilities within the company, and that their poor relationship would negatively impact revenues. As well, Daniel has no successor for his shares in the company. Both partners determine that they should have a buy/sell agreement in place, in case disability, whereby the remaining partner will have the opportunity to purchase the other's shares in the company. How should Daniel and Matthew fund the agreement? a) By purchasing key person disability insurance policies on each other. b) By purchasing indwidual disability insurance policies on each other. c) By purchasing disability buyout insurance policies on each other. d) By purchasing business overhead expense insurance through the company
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