Eldon Leases Tools and Other Equipment on a Long- Term

question 1

Multiple Choice

Eldon leases tools and other equipment on a long- term basis to construction companies. He needs to buy a new forklift truck to lease in his business. Which of the following describes ways that Eldon could acquire the forklift truck?

• A) Eldon could buy the forklift truck for cash from the manufacturer.
• B) Eldon could lease the forklift truck from the manufacturer with an option to purchase it for fair market value at the end of the lease.
• C) Eldon could borrow money from a bank, use the money to buy the forklift truck from the manufacturer, and give the bank a security interest in the forklift truck.
• D) Eldon could buy the forklift truck on credit from the manufacturer, with the manufacturer retaining title until payment has been made in full.
• E) All of the above.

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Definitions:

Decision Making

The cognitive process of selecting a course of action from among multiple alternatives.

Managers

Individuals in an organization responsible for directing and overseeing the work of employees and ensuring that organizational goals are met.

Confidence

Confidence is the belief in one's abilities, qualities, and judgment, often leading to higher performance, resilience, and willingness to tackle challenges.

Intelligence

The ability to acquire knowledge, think abstractly, understand complex ideas, and adapt to environmental challenges.