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RM Case study 2

Discussion in 'Financial Planning Study Group' started by ram10, 1st Dec, 2010.

  1. ram10

    ram10 Member

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    8th Sep, 2010
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    Location:
    melbourne
    Hi all,

    I am completing my RM assignment, and I need some help with the case study 2. Anyone who has completed the RM assignment, help me with the recommended value for the key person insurance. I am confused about how to recommend the key person insurance (individually for Christopher and Petra or together).
    Case study question: They have each borrowed $150,000 to purchase the business. In addition, they have borrowed $200,000 to help them with cash flow until the business is able to generate enough income to cover all its expenses.
    Any help is much appreciated.
     
  2. micdan

    micdan Active Member

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    24th Feb, 2010
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    Location:
    Cairns
    Risk Management Case Study 2

    Hi
    I successfully completed this assisgnment some months ago. From memory recommended $350,000 as both people have given a personal guarantee for the business loan.
    Hope this helps.
     
  3. Jess4fun

    Jess4fun Member

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    12th Dec, 2010
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    Location:
    Darwin

    I also had $350,000 for both