A Capital Lease, as Compared to an Operating Lease, Has

question 126

Multiple Choice

A capital lease, as compared to an operating lease, has a higher likelihood of which of the following?

• A) default payment
• B) violation of loan covenants
• C) stronger ratios
• D) higher overall expenses

---

Definitions:

Social Conscience

An awareness of the societal impacts of one's actions and a sense of responsibility toward the community and the environment.

Housing

Refers to the provision or availability of accommodation, considered in terms of its quality, nature, and affordability.

Assisted-Living Facility

A residential option for elderly or disabled people who need help with daily activities but do not require the intensive medical care provided by a nursing home.

Institutionalized

The process of establishing something as a norm or standard within a structured system, or the condition of being admitted into a long-term care facility.