Which of the Following Statements Is FALSE

question 3

Multiple Choice

Which of the following statements is FALSE?

• A)In a leveraged lease,the lessor borrows from a bank or other lender to obtain the initial capital for the purchase,using the lease payments to pay interest and principal on the loan.
• B)In some circumstances,the lessor is not an independent company but rather a separate business partnership,called a special-purpose entity (SPE),which is created by the lessor for the sole purpose of obtaining the lease.
• C)In a direct lease,the lessor is not the manufacturer,but is often an independent company that specializes in purchasing assets and leasing them to customers.
• D)SPEs are commonly used in synthetic leases,which are designed to obtain specific accounting and tax treatment.

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Definitions:

Teamwork

The collaborative effort of a group to achieve a common goal or complete a task in the most effective and efficient way.

Informal Communication

The exchange of information unofficially within an organization, not following formal channels, structures, or rules.

Position of Power

A status or role that provides someone with the authority to influence others or make important decisions.

Consensus Leadership

A leadership style that emphasizes making decisions based on the agreement and cooperation of all members of a group.