Chartered Retirement Planning Counselor (CRPC) Practice Exam 2025 - Free CRPC Practice Questions and Study Guide

A buy-sell agreement is fundamentally a contract that outlines the terms under which owners of a business can sell their interests in the business, often triggered by specific events such as death, disability, or retirement. This agreement is crucial for ensuring business continuity because it provides a clear procedure for transferring ownership stakes.

In the event an owner passes away or becomes unable to run the business, a buy-sell agreement guarantees that the remaining owners have the right to buy out the deceased or departing owner's share, thereby maintaining stability and control within the company. This structure helps avoid disputes among heirs or potential outside buyers, ensuring that the business remains in the hands of the original owners, or those who have a vested interest in its continued success.

While the other options might provide important functions in financial planning or investment, they do not capture the primary purpose of a buy-sell agreement in maintaining the integrity and operational continuity of the business.