If a fiRm Wishes to Keep a Lease Off of Its

question 173

Multiple Choice

If a firm wishes to keep a lease off of its balance sheet, it needs to use a(n) :

• A) Tax-oriented lease.
• B) Leveraged lease.
• C) Operating lease.
• D) Sale and leaseback arrangement.
• E) Financial lease.

---

Definitions:

Existential Generalization

A logical inference rule stating that if some predicate holds for at least one thing, then there exists something for which that predicate holds.

Universal Instantiation

A logical rule of inference that allows for the deduction of specific instances from a universally quantified statement.

Existential Instantiation

A logical principle where from a general statement, one can infer the existence of at least one particular instance.

Universal Generalization

Universal generalization is a logical principle that allows one to infer that something is true for all members of a class from its being true for every observed member.