Which of the Following Best Explains Why an Organization Would

question 53

Multiple Choice

Which of the following best explains why an organization would enter into a capital lease contract?

• A) To increase the ability to borrow additional funds from creditors.
• B) To reduce the organization's free cash flow from operations.
• C) To improve the organization's free cash flow from operations.
• D) To acquire the asset at the end of the lease period at a price lower than the fair market value.

---

Definitions:

Résumé

A document summarizing an individual's background, including education, work experience, and other relevant information, typically used for job applications.

Balanced

Having different elements properly proportioned or arranged to maintain equilibrium or harmony within a system, document, or argument.

Projected Job Market

An estimation or forecast of the future demand and availability of jobs within a certain sector or economy.

Internal Factor

refers to elements within an organization or individual that can influence decisions, behaviors, and outcomes, such as values, resources, and goals.