An Option to Purchase the Leased Asset for an Amount

question 22

Multiple Choice

An option to purchase the leased asset for an amount sufficiently below the expected fair value at the end of the lease term is known as a/an:

• A)minimum lease option
• B)guaranteed residual option
• C)bargain purchase option
• D)lease term option

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Definitions:

Metal Oxide Varistor

A voltage-dependent resistor with a nonlinear variance, used to protect electrical circuits from voltage spikes.

Inductance

The property of an electrical conductor by which a change in current flowing through it induces an electromotive force in both the conductor itself and in any nearby conductors by mutual inductance.

Wire Resistance

The electrical resistance of a wire, determined by its material, length, and cross-sectional area, affecting the flow of electric current through it.

Fleming's Left-hand Generator Rule

A rule used to predict the direction of movement in a motor, the direction of induced current, or the force on a conductor in a magnetic field, based on the thumb, forefinger, and middle finger of the left hand.