Which Statement Is Correct About the "Guaranteed Residual Value

question 45

Multiple Choice

Which statement is correct about the "guaranteed residual value"?

• A)It is assurance that the lessee will take care of the property.
• B)It is provided by the lessor.
• C)Lessor assumes the risk of the property falling below the guaranteed amount.
• D)It is not included in the minimum lease payment calculation.

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Definitions:

Ionic Compound

A chemical compound composed of ions held together by electrostatic forces termed ionic bonding, typically formed between metal and non-metal ions.

Ionic Charges

The electrical charge that an atom acquires when it gains or loses electrons in the formation of an ionic compound.

Cation

A cation is a positively charged ion that results from the loss of one or more electrons by an atom.

Anion

A negatively charged ion, attracted to the anode during electrolysis, typically formed by the gain of electrons.