Mpurchases a $70,000 life insurance policy with premium payments of $550 a year for the first 5 years. at the beginning of the sixth year, the premium will increase to $800 per year but will remain level thereafter. the face amount will remain at $70,000 throughout the life of the policy. the type of policy that m has purchased is?

Banana computers has decided to procure processing chips required for its laptops from external suppliers instead of manufacturing them in their own facilities. how will this decision affect the firm? a. the firm will be protected against the principal-agent problem. b. the firm's administrative costs will be low because of necessary bureaucracy. c. the firm will have more flexibility in purchasing and comparing prices of goods and services. d. the firm will have high-powered incentives, such as hourly wages and salaries.