Quincy Owns a Metal Fabricating Company

question 13

Multiple Choice

Quincy owns a metal fabricating company.He is desperately in need of working capital in order to carry out several large orders.Therefore he sells his heavy stamping equipment to Beneficial Leasing Inc.in a five-year purchase lease plan.This arrangement amounts to

• A)a sale and leaseback.
• B)an operating lease.
• C)the mortgaging of assets.
• D)the ducktail plan.
• E)one of the highest costs in asset financing.

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Definitions:

Fluid Intelligence

The aspect of intelligence involving the ability to reason quickly and to think abstractly, often seen as the capacity to solve novel problems.

Motor Abilities

Skills related to physical actions and movements, such as coordination, balance, and manual dexterity.

Encouragement

The act of giving support, confidence, or hope to someone.

Participation

The action of taking part in an activity or event.