One Strategy U

question 22

Multiple Choice

One strategy U.S. manufacturers have employed in order to become more competitive is:

• A) focusing on providing the lowest-priced products.
• B) relying on advanced technology and the Internet to unite companies.
• C) maintaining a distance relationship with suppliers in an effort to guard trade secrets.
• D) increasing advertising budgets.

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Definitions:

Lessee

An individual or entity that leases or rents property or equipment from another, known as the lessor.

Leveraged Lease

A lease arrangement where the lessor uses borrowed funds to acquire an asset which is then leased to a lessee, effectively leveraging the investment.

Tax-Oriented Lease

A leasing arrangement designed to maximize tax benefits for the lessor, who retains ownership of the asset for tax purposes.

Leveraged Lease

A financing arrangement where a lessor uses borrowed funds to purchase an asset that is then leased to a third party.