Which of the Following Is a Reason a Company Would

question 133

Multiple Choice

Which of the following is a reason a company would prefer an operating lease over purchasing an asset?

• A) The company's ability to borrow increases due to larger assets.
• B) The company benefits from the increase in value of the assets.
• C) The risk of loss from obsolescence is reduced.
• D) The company does not have to depreciate the asset.

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Definitions:

Public Good

An item that cannot be withheld from people and does not diminish in availability due to individual consumption, thereby accessible to all without limiting others.

In Favor

A position or opinion that is supportive of or positive about a particular situation, proposal, or concept.

Median-Voter Model

A theoretical model in political science suggesting that the outcome of a majority vote is most likely to reflect the preference of the median voter.

Political Logrolling

A method where lawmakers reciprocate support by backing each other's suggested measures or legislative agendas.