In a Finance Lease,when Does the Risk of Loss Pass

question 25

Multiple Choice

In a finance lease,when does the risk of loss pass from the supplier to lessee,if the supplier is a merchant?

• A) when the parties sign the lease contract
• B) when the lessee make the first lease payment
• C) when the lessor receives the first lease payment
• D) when the supplier ships the goods
• E) when the lessee receives the goods

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Definitions:

Earned-Income Activities

Activities performed by non-profit organizations or businesses that generate revenue through the sale of goods and services rather than through donations.

Social Entrepreneurs

Individuals who establish enterprises with the goal of solving social problems or effecting social change, using business principles for public good.

Economic Value

The worth of a good or service determined by the benefit it provides weighed against its cost.

Social Value

The importance or benefit that something provides to society or a specific community group, often beyond economic value.