A fiRm That Is Very Cyclical in Nature and Requires

question 49

Multiple Choice

A firm that is very cyclical in nature and requires extra equipment only during its peak periods should consider leasing that equipment using a(n) _____ lease.

• A) Operating.
• B) Tax-oriented.
• C) Sale and buyback.
• D) Leverage.
• E) Financial.

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Definitions:

SAE

Society of Automotive Engineers, an international organization that develops standards for engineering professionals in various industries.

Aeronautical Engineering

A specialized field of engineering focused on the design, development, testing, and production of aircraft and spacecraft.

Standards

Established norms or requirements about technical systems and the uniformity of products and processes, often created by standardization organizations.