Question

Prudential and several other large insurance companies have joined together to underwrite an extremely large insurance policy. This sort of association is referred to as a(n):

a) Sole proprietorship
b) Corporation
c) Partnership
d) Syndicate

Answer 1

The correct answer is d) Syndicate. When several large insurance companies join together to underwrite a large insurance policy, it is referred to as a syndicate.

Step-by-step explanation:

The correct answer is d) Syndicate. When several large insurance companies join together to underwrite a large insurance policy, it is referred to as a syndicate. A syndicate is a temporary association of businesses or individuals formed to undertake a specific project or venture. In this case, the insurance companies are pooling their resources and expertise to collectively take on the risk of the extremely large insurance policy.