What Is True Respecting the Economics Behind Leasing Arrangements

question 28

Multiple Choice

What is true respecting the economics behind leasing arrangements?

• A)By agreeing to provide a guarantee that the leased property will be worth at least a certain amount, the lessor assures the lessee that the property will be treated with due care.
• B)A guaranteed residual value means that the lessee bears the risk and cost of the property falling below the specified value of the guarantee.
• C)Since the lessor is assured of receiving the guaranteed amount (or more), the guaranteed residual value does not form part of the lease payment.
• D)The bargain purchase option (BPO)is not included when calculating the present value of lease payments even though a BPO is almost certain to be exercised.

---

Definitions:

Job Satisfaction

The level of contentment employees feel regarding their job, which can impact their motivation, performance, and likelihood of remaining with the company.

Job Sharing

An employment arrangement where two or more individuals share the responsibilities and duties of a single full-time job.

Retirement

The period in one's life after concluding professional or working life, often marked by receiving pensions.

Job Enrichment

A strategy employed by organizations to enhance job roles with more meaningful tasks and responsibilities, aiming to increase employee motivation and satisfaction.