Which of the Following Is Not an Advantage of an Operating

question 9

Multiple Choice

Which of the following is not an advantage of an operating lease?

• A) reduced risk of obsolescence
• B) 100 percent financing
• C) income tax advantages
• D) accelerated depreciation

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Definitions:

Preferential Payment

A payment made by an insolvent debtor that gives preferential treatment to one creditor over another.

Voluntary Petition

A legal document filed by an individual or entity declaring their intent to undergo bankruptcy proceedings under their own accord.

Bankruptcy Relief

Legal measures available to individuals or corporations that cannot meet their financial obligations, allowing for reorganization or discharge of debts.

Preferential Payment

A financial transaction that gives prior payment to one creditor over others before a debtor's bankruptcy.