Alex Leases Property from Sandra for Business

question 11

Multiple Choice

Alex leases property from Sandra for business. Alex opens a hardware repair shop in this property. He affixes welding equipment to the property. After a period of time, Alex decides to move his business to a different location. Which of the following statements is true of this scenario?

• A) Alex may not move the welding equipment, as it is now Sandra's property.
• B) Alex may move the welding equipment only if a written agreement states that the parties will treat the welding equipment as his personal property.
• C) Alex may not move the welding equipment, as it is essential to the functioning of the structure.
• D) Alex may move the welding equipment, as the welding equipment is a trade fixture.

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Definitions:

Regulation

Rules or directives made and maintained by an authority to control or manage activities, often within industry sectors, for public good.

Allocative Efficiency

A state of the economy where the distribution of resources among different uses is optimal, with no one able to be made better off without making someone else worse off.

Marginal Benefits

The bonus satisfaction or utility acquired from consuming an additional unit of a product or service.

Marginal Costs

The increase in expense associated with manufacturing an additional unit of a product or service.