In the Context of Financing Tools Available to New Businesses

question 32

Multiple Choice

In the context of financing tools available to new businesses, identify a major disadvantage to asset leasing.

• A)Any assets that are leased must be paid for upfront, making the proposition of leasing nearly as expensive as purchasing new equipment outright.
• B)A new business might spend more money on leasing equipment over time than if it had bought the equipment outright.
• C)Equipment leasing agreements make it difficult for a small business to upgrade to newer machines when their leased machines become obsolete.
• D)Major asset leasing companies are unwilling to risk leasing equipment to new businesses.

---

Definitions:

President Richard Nixon

The 37th President of the United States, serving from 1969 to 1974, known for his foreign policy achievements and the Watergate scandal, which led to his resignation.

Henry Kissinger

A German-born American political scientist and diplomat who played a significant role in U.S. foreign policy between the 1960s and 1970s, notably in the Vietnam War and détente with the Soviet Union.

Antiwar Demonstrations

Public protests against military conflict and the policies that promote it, often associated with the peace movement.

Kent State University

Site of a 1970 shooting where National Guard troops fired on anti-Vietnam War protestors, resulting in four deaths and escalating public outcry.