A Financial Lease Is Similar to an Operating Lease, Since​

question 3

Multiple Choice

A financial lease is similar to an operating lease, since​

• A) ​the firm owns the asset
• B) ​the lease contract lacks a maintenance clause
• C) ​the lessor owns the asset
• D) ​the lease may not be canceled

---

Definitions:

External Benefit

A benefit that an action or activity provides to individuals or groups who are not directly involved in it.

Private Cost

The cost incurred by an individual or company in producing goods or services, excluding any costs imposed on others which are not reflected in market prices.

Social Value

The overall impact of an organization, policy, or project on society as a whole, beyond just the direct economic benefits.

Producer Surplus

The difference between what producers are willing to accept for a good compared to what they actually receive, essentially measuring the benefit to producers from selling at the market price.