Which of the Following Statements Is TRUE of Leasing

question 95

Multiple Choice

Which of the following statements is TRUE of leasing?

• A) It is an arrangement in which a contractor supplies managerial know-how to operate a hotel, hospital, airport, or other facility in exchange for compensation.
• B) The lessor transfers ownership of the property in exchange for a lump-sum payment.
• C) It is a high-risk and high-cost method of entering a foreign market.
• D) A major advantage for the focal firm is the ability to gain quick access to target markets, while putting assets to use in earning profits.

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Definitions:

Emulsion

A stable mixture of two or more immiscible liquids, such as oil and water, often with an emulsifier to maintain stability.

Colloid

A mixture wherein fine particles are dispersed throughout another substance without dissolving, such as in gels or emulsions.

Suspension

Liquid through which a solid is dispersed and from which the solid separates unless the liquid is kept in motion.

Equilibrium

A state of balance between opposing forces or actions.