A Sales Leaseback Can Best Be Defined As

question 183

Multiple Choice

A sales leaseback can best be defined as:

• A) A short term lease where the lessor is responsible for the insurance, tax and upkeep. Often cancellable on short notice.
• B) A longer term, fully amortized lease under which the lessee is responsible for the upkeep. Usually not cancellable without penalty.
• C) A financial lease in which the lessor is the owner for tax purposes.
• D) A financial lease in which the lessee sells an asset to the lessor and then leases in back.
• E) A financial lease where the lessor borrows a substantial of the cost of the leased asset.

---

Definitions:

Collective Agreement

A negotiated contract between an employer and a labor union that outlines terms of employment, wages, and working conditions for employees.

Management

The process of organizing, planning, leading, and controlling resources to achieve organizational goals.

Precedent

A new standard that arises from the past practices of either the company or the union.

Past Practices

Historical ways of doing things within an organization, used as a reference for decision-making and policy development.