A Financial Arrangement That Enables a Business to Purchase a House

question 44

Multiple Choice

A financial arrangement that enables a business to purchase a house and sell it to a financial institution that in turn gives a long term lease of the property back to the business is called

• A) a leaseback.
• B) a saleback.
• C) a mortgageback.
• D) a loanback.
• E) a purchaseback.

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Definitions:

Default

Failure to fulfill a legal obligation, especially failing to make a required payment on a loan or financial agreement.

Time Instrument

A financial document or negotiable instrument that promises payment of a certain sum of money at a future date, as opposed to on demand.

Payment

A financial transaction where money is transferred in exchange for goods or services.

Future Date

A specified day in the future on which an event is planned or expected to occur.