A fiNancial Lease in Which the Lessee Sells an Asset

question 239

Multiple Choice

A financial lease in which the lessee sells an asset to the lessor and then leases it back is called a(n) ______________.

• A) leveraged lease
• B) Sale and leaseback.
• C) Operating lease.
• D) Tax-oriented lease.
• E) Straight lease.

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Definitions:

Accident-prone Drivers

Individuals who have a higher likelihood of being involved in vehicular accidents due to behavior or other factors.

Bonding

The process of establishing a secure or insured relationship, often through a financial guarantee or a bond, to protect against losses or damages.

Wrongful Act

An action that is illegal or immoral, which can lead to civil liability or criminal charges for the person who commits it.

Subrogation

The legal process by which one party, such as an insurer, assumes another's legal right to collect a debt or damages after having paid for the loss.