Which of the Following Is the Best Definition of a Sale

question 144

Multiple Choice

Which of the following is the best definition of a sale and leaseback?

• A) A shorter-term lease where the lessor is responsible for insurance, taxes, and upkeep.
• B) A financial lease in which the lessee sells an asset to the lessor and then leases it back.
• C) A financial lease in which the lessor is the owner for tax purposes. Also called a true lease or a tax lease.
• D) A leveraged lease is a tax-oriented lease involving three parties: a lessee, a lessor, and a lender.
• E) A longer-term, fully amortized lease under which the lessee is responsible for upkeep. Usually not cancellable with-out penalty.

---

Definitions:

Caravaggio

An Italian painter known for his dramatic use of light and shadow, and his realistic depiction of the human state, both physical and emotional.

Spain

A country in southwestern Europe, located on the Iberian Peninsula, known for its rich history, diverse culture, and significant contributions to art, architecture, and global exploration.

Italian Baroque

An artistic style of the late 16th to the early 18th centuries in Italy characterized by dramatic use of light, bold ornamentation, and intense emotion.

Jesuit Order

A Catholic religious order founded in 1540 by Ignatius of Loyola, known for its educational, missionary, and charitable works worldwide.