Which of the Following Environments Would the Threat of New

question 37

Multiple Choice

Which of the following environments would the threat of new trade restrictions fall into?

• A) Economic
• B) Legal/regulatory
• C) Sociocultural
• D) Competitive

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Definitions:

Financier Lessor

An entity engaged in the business of leasing out assets, typically providing the finance to purchase the asset which is then leased to the user.

Lease Receivable

An asset representing the right to receive future lease payments from lessees under lease agreements, reflecting the value of the asset leased out.

Operating Leases

Leases in which the lessee obtains the right to use an asset for a short period of time, without assuming the risks and rewards of ownership.

Initial Direct Costs

Expenses that are directly attributable to negotiating and arranging a lease, which are added to the carrying amount of the leased asset or deducted from the leasing income.