One Incentive for Entering into Sale-And-Leaseback Arrangements Is

question 161

Multiple Choice

One incentive for entering into sale-and-leaseback arrangements is:

• A)lessor has an abundance of cash.
• B)improvement in cash flow for the lessor.
• C)lessee wants to increase return on investment.
• D)tax implications are favourable for the lessor.
• E)lessee may be able to reduce finance expense through the refinancing aspects of the sale-leaseback.

---

Definitions:

Comparative Advantage

The ability of an individual or country to produce a particular good or service at a lower opportunity cost than its trade partners, leading to more efficient trade outcomes.

Domestic Price

The price of goods or services within a country, influenced by local demand and supply conditions.

World Price

The global market price of a good or service, determined by supply and demand in the international marketplace.

No-Trade Policy

A policy or stance that restricts or prohibits trading certain goods, services, or information between countries or jurisdictions.