An Operating Lease Is One in Which

question 49

Multiple Choice

An operating lease is one in which:

• A) The lessee agrees to maintain the operating capability of the asset to a level specified by the lessor.
• B) The risks and benefits of ownership reside with the lessor.
• C) The lessee is required to maintain the leased asset according to an agreed maintenance schedule.
• D) The risks and benefits of ownership reside with the lessor and the lessee is required to maintain the leased asset according to an agreed maintenance schedule.
• E) None of the given answers.

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Definitions:

ΔG°

The standard Gibbs free energy change, a thermodynamic property indicating the spontaneity of a reaction at standard conditions.

Exothermic Reaction

A chemical reaction that releases energy in the form of heat, resulting in a lower energy state for the products compared to the reactants.

Stronger Bonds

Bonds characterized by high bond energy, indicating a stronger force of attraction between atoms.

Standard Gibbs Free Energy

A thermodynamic property used to predict the direction of chemical reactions and the extent to which reactions proceed.