If a Lease Transfers the Residual Value of the Leased

question 101

True/False

If a lease transfers the residual value of the leased asset to the lessee at the end of the lease term, the lessee has permanent ownership of the leased asset.

---

Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price within a specific time period.

Market Mechanism

The process through which supply and demand interact to determine prices and allocate resources efficiently in a market economy.

Equilibrium Quantity

The amount of products or services available meets the amount that consumers want to buy at the price point where supply and demand balance.

Crude Oil

A naturally occurring, unrefined petroleum product composed of hydrocarbon deposits and other organic materials used as a primary energy source.