Which of the Following Statements Is FALSE

question 27

Multiple Choice

Which of the following statements is FALSE?

• A)In a direct lease,the lessor is the manufacturer (or a primary dealer)of the asset.
• B)The lease specifies any cancellation provisions,the options for renewal and purchase,and the obligations for maintenance and related servicing costs.
• C)If a firm already owns an asset it would prefer to lease,it can arrange a sale and leaseback transaction.
• D)With many leases,the lessor provides the initial capital necessary to purchase the asset,and then receives and retains the lease payments.

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Definitions:

Damage Award

A financial compensation granted by a court to indemnify losses or damages suffered by a plaintiff.

Drudgery

Tedious, hard, and repetitive work that is often seen as unenjoyable.

Competitive Factor Markets

Markets where factors of production (like labor, capital) are bought and sold, with many sellers and buyers leading to competitive prices.

Prices

The monetary value assigned to goods and services, determining how much consumers need to pay to obtain them.