Which of the Following Is a Reason a Lessee Would

question 58

Multiple Choice

Which of the following is a reason a lessee would enter into an operating lease instead of buying an asset?

• A)The risk of loss from obsolescence is reduced.
• B)The company's ability to borrow increases due to larger assets.
• C)The company can claim capital cost allowance.
• D)The company benefits from the appreciation in value of the asset.

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Definitions:

Physiological Functioning

The activities and processes of the body's systems and organs that are necessary for maintaining life and health.

Addictive Behavior

Patterns of action characterized by compulsive engagement in rewarding stimuli, despite adverse consequences.

Out Of Control

Refers to a situation or process that cannot be managed or governed effectively.

BAC

Blood Alcohol Concentration, a measurement of the amount of alcohol in the bloodstream.