If a Lease Is Capitalized, the Firm Successfully Circumvents Restrictive

question 46

True/False

If a lease is capitalized, the firm successfully circumvents restrictive financing covenants.

---

Definitions:

Inelastic

Describes a scenario where the demand or supply of a good or service is not significantly changed when the price of that good or service changes.

Elasticity of Demand

The measure of how much the quantity demanded of a good responds to a change in the price of that good.

Quantities Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price level.

Inelastic

Describes a situation where the demand or supply for a good or service is relatively unresponsive to changes in price.